6. 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 carns an economic profit of $7,600. b. The firm incurs an economic loss of $7,600. 200 CD=7,600 tess 7, 600-1000-3500 42] 10000/200 = 50 c. The average variable cost of production exceeds the market price. d. The average total cost of production is less than the market price.

6. 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 carns an economic profit of $7,600. b. The firm incurs an economic loss of $7,600. 200 CD=7,600 tess 7, 600-1000-3500 42] 10000/200 = 50 c. The average variable cost of production exceeds the market price. d. The average total cost of production is less than the market price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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