In a Competitive Market the Price Is $8

question 127

Multiple Choice

In a competitive market the price is $8. A typical firm in the market has ATC = $6, AVC = $5, and MC = $8. How much economic profit is the firm earning in the short run?

• A)$0 per unit
• B)$1 per unit
• C)$2 per unit
• D)$3 per unit

Explain the impact of historical trade policies on imports and exports.

Analyze the role of exchange rates in trade balance and how they affect trade surplus or deficit.

Evaluate the principles guiding the international trade according to comparative and absolute advantage theories.

Determine the impact of specialization and trade on production and consumption of goods between countries.

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Definitions:

Liquidity

The ability of an asset to be quickly converted into cash with minimal loss of value.

Efficiency

A measure of how effectively resources are used to achieve a goal or perform a process, often with minimal waste or time.

Short-term Obligations

Financial commitments or debts that are due to be paid within one year.

Past Performance

A review of an entity's previous achievements and results, often used to predict future success or potential.