If a Competitive Firm Is Selling 900 Units of Its

question 50

Multiple Choice

If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then

• A)its total cost is more than $9,000.
• B)its marginal revenue is less than $10.
• C)its average total cost is less than $10.
• D)the firm cannot be a competitive firm because competitive firms cannot earn positive profits.

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Definitions:

Bodily Injury Liability

Insurance coverage that pays for injuries to others caused by the policyholder in an automobile accident.

Automobile Insurance

An insurance policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Insurer

A party that accepts the risk of loss in return for a premium (payment of money) and agrees to compensate the insured against a specified loss.

General Life Insurance

A type of life insurance policy that provides financial protection to the beneficiaries in the event of the policyholder's death, without specifying the cause.