When Fixed Costs Are $140 000 and the Contribution Margin

question 33

Multiple Choice

When fixed costs are $140 000 and the contribution margin is $20, the break-even point is:

• A) 7 000 units.
• B) 14 000 units.
• C) 17 500 units.
• D) 70 000 units.

Analyze the impact of low barriers to entry on market structure and firm profits.

Explain how the price-searcher's decision-making process affects output and pricing in the short and long run.

Understand the conditions and outcomes of competitive price-searcher markets in both short-run and long-run equilibriums.

Analyze the effects of market adjustments (entry and exit of firms) on prices, demand, and economic profits in competitive price-searcher markets.

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