4. Suppose the competitive firm faces a price of $50, an average variable cost of $33, and has an average fixed cost of $5. In the short-run, this firm A.cannot cover all its costs, and will have a loss per unit of $12. B.can cover all its costs, and will have a profit per unit of $12 . This is the correct answer. C.cannot cover all its costs, and will have a loss per unit of $12. D.can cover all its costs, and will have a profit per unit of $17
4. Suppose the competitive firm faces a price of $50, an average variable cost of $33, and has an average fixed cost of $5. In the short-run, this firm A.cannot cover all its costs, and will have a loss per unit of $12. B.can cover all its costs, and will have a profit per unit of $12 . This is the correct answer. C.cannot cover all its costs, and will have a loss per unit of $12. D.can cover all its costs, and will have a profit per unit of $17
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Give typing answer with explanation and conclusion
4. Suppose the competitive firm faces a price of $50, an
average fixed cost of $5. In the short-run, this firm
A.cannot cover all its costs, and will have a loss per unit of $12.
B.can cover all its costs, and will have a profit per unit of $12 .
This is the correct answer.
C.cannot cover all its costs, and will have a loss per unit of $12.
D.can cover all its costs, and will have a profit per unit of $17
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