A Firm Receives $10 Per Unit at an Equilibrium Level

question 82

Multiple Choice

A firm receives $10 per unit at an equilibrium level of output of 80 units. The average total cost at 80 units of output is $8. The firm makes a total economic profit of:

• A)$120.
• B)$160.
• C)$100.
• D)$80.
• E)$640.

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Definitions:

Pleasant Environment

An environment that is enjoyable or soothing to be in due to its aesthetics, atmosphere, or conditions.

Full-line Discount Store

Retail establishments that offer a wide range of products at reduced prices, typically in a large-store format.

Service Retailer

A firm that primarily sells services rather than merchandise.

Pharmaceutical

Relating to the preparation, dispensing, and effective use of medicinal drugs for treating or preventing diseases.