The Figure Given Below Shows the Cost Curves of a Firm

question 51

Multiple Choice

The figure given below shows the cost curves of a firm. Figure 8.3 ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
In Figure 8.3, if the marginal revenue of the firm is constant at $55, calculate the profit earned by the firm?

• A)$35
• B)$40
• C)$600
• D)$4, 800
• E)$0

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Definitions:

Oedipus Complex

A Freudian theory that refers to a child's feelings of desire for their opposite-sex parent and jealousy and envy towards their same-sex parent.

Phallic Stage

A stage in Freudian psychosexual development, occurring in early childhood, where the libido's focus is on the genital area, and the beginnings of sexual identity are formed.

Libido

A phrase in the context of psychoanalytic theory that refers to the libido or sexual longing.

Sexual Energy

The energy associated with sexual desires and activities.