Assume a perfectly competitive firm incurs a total cost of $10,000,marginal cost of $38,and fixed cost of $2,000.It sells 200 units of its product at a market price of $38 per unit.Which of the following is true in this case?
A) The firm earns an economic profit of $7,600.
B) The firm incurs an economic loss of $7,600.
C) The average variable cost of production exceeds the market price.
D) The average total cost of production is less than the market price.
E) The firm earns an economic profit of $6,600.
Correct Answer:
Verified
Q82: Claude's Copper Clappers sells clappers for $40
Q83: Exhibit 8.7 Q84: Claude's Copper Clappers sells clappers for $65 Q85: Exhibit 8.7 Q86: For a perfectly competitive firm operating at Q88: At its present rate of output,Barrel O' Q89: Exhibit 8.7 Q90: A perfectly competitive firm sells 200 units Q91: If a manufacturer shuts down in the Q92: Exhibit 8.7 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
![]()
![]()
![]()