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Consider the Price and Quantity Data Below for a Perfectly

Question 1

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.  Price ($)  Quantity 5100051250515005175052000\begin{array} { | c | c | } \hline \text { Price } ( \$ ) & \text { Quantity } \\\hline 5 & 1000 \\\hline 5 & 1250 \\\hline 5 & 1500 \\\hline 5 & 1750 \\\hline 5 & 2000 \\\hline\end{array} TABLE 9- 1
-Refer to Table 9- 1.Suppose this firm is producing 1500 mousetraps and its average total cost is $5.10 per unit.The firm will be


A) earning profits of $150.
B) earning profits of $7650.
C) breaking even.
D) suffering losses of $7650.
E) suffering losses of $150.

Correct Answer:

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