Exhibit 10-7 -At the Profit-Maximizing Output Level, the Firm in Exhibit 10-7

question 4

Multiple Choice

Exhibit 10-7
-At the profit-maximizing output level, the firm in Exhibit 10-7 is

• A) earning economic profit of $760
• B) earning economic profit of $950
• C) earning zero economic profit
• D) earning economic profit of $990
• E) suffering a loss of $1,000

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Definitions:

Eye

An organ of vision that detects light and converts it into electro-chemical impulses in neurons.

Pupil

The opening in the center of the iris of the eye that allows light to strike the retina.

Dim Room

A dim room is a space where the lighting is intentionally kept low, either for ambiance, to reduce energy consumption, or to facilitate certain activities or experiments.

Widens

To become broader or more open in space or time.