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Consider the Following Total Cost Schedule for a Perfectly Competitive

Question 123

Multiple Choice

Consider the following total cost schedule for a perfectly competitive firm producing ball- point pens.  Output  per period  TVC ($)  TFC ($) 0051025203530654010550155 TABLE 9- 3\begin{array}{l}\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Output } \\\text { per period }\end{array} & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \\\hline 0 & 0 & 5 \\\hline 10 & 2 & 5 \\\hline 20 & 3 & 5 \\\hline 30 & 6 & 5 \\\hline 40 & 10 & 5 \\\hline 50 & 15 & 5 \\\hline\end{array}\\\text { TABLE 9- } 3\end{array}
-Refer to Table 9- 3. Suppose the prevailing market price for this firm's product is $0.45. If the firm is producing 20 units of output per period, then its profit per unit is and its total profit per period is .


A) $6; $120
B) $0.40; $8
C) $9; $180
D) $0.01; $2
E) $0.05; $1.00

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