If MC's Hammers, a Perfectly Competitive Firm, Finds That Its

question 127

Multiple Choice

If MC's Hammers, a perfectly competitive firm, finds that its total revenue is $45, 000, its fixed cost is $20, 000, and its total cost is $50, 000, its producer surplus is

• A)zero because TC > TR
• B)-$5, 000
• C)$25, 000
• D)$15, 000
• E)-$25, 000

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract between two other parties, but for whom the benefit was not the contract's primary intent.

Intended Beneficiary

A person or entity that is specifically designated to benefit from a contract, even though they are not a direct party to that contract.

Reasonable Person

A legal standard used to determine how an average person would responsibly act under certain circumstances for the purposes of establishing negligence in civil law.

Rights

Privileges or entitlements granted by law, custom, or agreement to individuals or groups, allowing them to perform certain actions or to be treated in a specific way.