If the Market Price Is $50 Per Unit for a Good

question 1

Multiple Choice

If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52,then the firm

• A) incurs an economic loss of $2 per unit.
• B) makes an economic profit of $2 per unit.
• C) makes zero economic profit.
• D) incurs a total economic loss of $52.
• E) More information is needed to determine the firm's economic profit or loss per unit.

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Definitions:

Fisheries

Industry or activity concerned with catching, processing, or selling fish, shellfish, and sometimes whales.

State Governments

The government entities that have jurisdiction over particular states or provinces within a federal system, responsible for local legislation and governance.

Organizational Buyers

Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.

Reprocessing

The act of processing used or discarded materials to make them suitable for reuse, often involving cleaning, repairing, or transforming them into new products.