A sandwich shop owner has the following information: P = $4, ATC = $2, AVC = $1, MC = 4 and Q = 500. From this, she can determine:
A) her profits are not being maximised.
B) she has earned zero economic profits.
C) she has earned economic profits of $1000.
D) she has earned economic profits of $1500.
Correct Answer:
Verified
Q35: Narrbegin Exhibit 7.1 Total revenue and total
Q36: A perfectly competitive firm in the short
Q37: Total revenue is computed as:
A) the product
Q38: Assume the market equilibrium price is $100.
Q39: A perfectly competitive firm always set the
Q41: Narrbegin Exhibit 7.3 A firm's cost and
Q42: Consider a firm with the following cost
Q43: If the price of a product falls
Q44: Narrbegin Exhibit 7.4 Marginal revenue and cost
Q45: If there is no level of output
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