Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 586

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. At Q=500, the firm's profits equal

• A)$1,000.
• B)$4,000.
• C)$7,000.
• D)$10,000.

Understand the concept of credit cost curve and its implications for credit policy.

Define credit period and identify factors influencing it.

Understand the concept of credit scoring and its application in credit evaluation.

Analyze the impact of economic conditions on a firm’s credit policy.

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