The Figure Given Below Shows Three Short Run Average Total

question 106

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10. If its economic profit is $20,000, then it must be producing:

• A)40,000 units of output.
• B)20,000 units of output.
• C)30,000 units of output.
• D)10,000 units of output.
• E)50,000 units of output.

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Definitions:

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.

Inventory Volumes

The total amount of goods a company has available for sale or production at any given time, often measured in units or cost value.

Periodic Inventory System

An accounting method that updates inventory balance and cost of goods sold at the end of an accounting period.

Computerized Optical Scanning Equipment

Technology devices used for electronically converting images of text, handwriting, or printed documents into machine-encoded text or images.