-Computer Memory Chips Are Produced on Wafers,each Wafer Having Many

question 163

Multiple Choice

-Computer memory chips are produced on wafers,each wafer having many separate chips that are separated and sold.The above table shows costs for a perfectly competitive producer of computer memory chips.If the market price of a wafer is $2,400 dollars,the firm is

• A) making zero economic profit.
• B) making an economic profit of $12,000 an hour.
• C) incurring an economic loss of $2,800 an hour.
• D) incurring an economic loss of $2,000 an hour.
• E) making an economic profit of $2,400 an hour.

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Definitions:

Lease Term

The duration for which a lease agreement is effective, usually specified in months or years.

Plant Asset

Plant assets are long-term tangible assets that are used in the production or supply of goods and services, such as machinery, buildings, and vehicles.

Office Equipment

Tangible property (such as desks, chairs, computers, etc.) used in an office environment to perform work activities.

Patent

A legal right granted by a government authority to an inventor to exclude others from making, using, or selling an invention for a certain period of time.