6. Assume a perfogly 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 200 CD=7,600 a The firm carns an economic profit of $7,600. b. The firm incurs an economic loss of $7,600. tess 7,600-1000-3500 c. The average variable cost of production exceeds the market price. dThe average total cost of production is less than the market price. e. The firm earns an economic profit of $6,600. 42112000/200=50

6. Assume a perfogly 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 200 CD=7,600 a The firm carns an economic profit of $7,600. b. The firm incurs an economic loss of $7,600. tess 7,600-1000-3500 c. The average variable cost of production exceeds the market price. dThe average total cost of production is less than the market price. e. The firm earns an economic profit of $6,600. 42112000/200=50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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