Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 586

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. At Q=500, the firm's profits equal

• A)$1,000.
• B)$4,000.
• C)$7,000.
• D)$10,000.

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