The Figure Given Below Shows Three Short Run Average Total

question 13

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, a profit-maximizing firm's total cost is $1,000. If the price of the product is $3 per unit and the firm produces at the profit-maximizing level, the firm will earn an economic profit equal to:

• A)-$1,000.
• B)-$700.
• C)-$400.
• D)-$600.
• E)$200.

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Definitions:

Capitalist

An individual who possesses capital, particularly financial assets, and engages in the investment and management of these assets with the aim of generating profit.

Hypocritical

Exhibiting a discrepancy between one's proclaimed beliefs or values and one's actual behavior or actions, often implying a lack of sincerity.

Free World

A Cold War-era term referring to countries aligned with the United States and its allies, emphasizing their non-communist ideology and purported adherence to democracy.