Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

question 7

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-Quickie Inc., a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is equal to $25 and its average total cost is $20, then how much is it earning in economic profit?

• A)Economic profit is always equal to zero in perfect competition.
• B)$10,000
• C)$8,000
• D)$2,000
• E)$4,000

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Definitions:

Disadvantage

A disadvantage is a condition or situation that puts someone or something at a less favorable position compared to others.

High Self-monitors

Individuals who are highly aware of their own behavior and the social context, adjusting their actions and presentation to suit different situations.

Low Self-monitors

refers to individuals who consistently exhibit their true thoughts, feelings, and behaviors regardless of the social context, displaying less adaptation to social cues.

External Locus

Refers to a belief that outcomes in one's life are due to external forces and circumstances beyond individual control.