A Perfectly Competitive Firm Produces 50 Units of Output at Equilibrium

question 105

Multiple Choice

A perfectly competitive firm produces 50 units of output at equilibrium in the short run.The total cost borne by the firm is $300 and the average revenue is $2.Therefore:

• A)is just breaking even.
• B)is earning positive profits.
• C)is facing a positively sloped demand curve.
• D)is suffering losses.
• E)is experiencing diseconomies of scale.

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Definitions:

Fem Cap

is a type of cervical cap used as a contraceptive device, designed to fit over the cervix to block sperm from entering the uterus.

Diaphragm

A barrier method of contraception that is a dome-shaped cup inserted into the vagina to cover the cervix and prevent sperm from entering the uterus.

Spermicide

Substances used to kill sperm, applied inside the vagina as a form of contraception.

Intrauterine Devices (IUDs)

Long-term, reversible contraceptives inserted into the uterus to prevent pregnancy, available in hormonal and non-hormonal forms.