Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.Suppose this firm is producing 1250 mousetraps and its average total cost is $4 per unit.The firm will be
A) suffering losses of $5000.
B) earning profits of $5000.
C) breaking even.
D) earning profits of $1250.
E) suffering losses of $1250.
Correct Answer:
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