A Perfectly Competitive Firm Produces in a Market Where the Prevailing

question 3

Multiple Choice

A perfectly competitive firm produces in a market where the prevailing price is $25.At its current output level of 10,000 units,its average total cost equals $15.The firm is earning

• A)a total money profit of $100,000
• B)a total economic profit of $100,000
• C)a total money profit of $250,000
• D)a total economic profit of $250,000
• E)both a total money profit and a total economic profit of $100,000

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Definitions:

Defective Instrument

A legal or financial document that contains errors, omissions, or flaws rendering it invalid or ineffective.

Dishonor

To refuse to accept or pay a draft or a promissory note when it is properly presented. An instrument is dishonored when presentment is properly made and acceptance or payment is refused or cannot be obtained within the prescribed time.

Handwriting

The act or practice of writing done with the hand, using instruments such as a pen or pencil, which can be unique to each individual.

Validity

Refers to the legal effectiveness and enforceability of a contract or legal document.