8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs are $20,000. Marginal cost is $8 per unit and rising. Economic profits are equal to zero b. are greater than zero c. are less than zero d. cannot be determined а.
8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs are $20,000. Marginal cost is $8 per unit and rising. Economic profits are equal to zero b. are greater than zero c. are less than zero d. cannot be determined а.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.7IP
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![8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at
the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs
are $20,000. Marginal cost is $8 per unit and rising. Economic profits
are equal to zero
b. are greater than zero
are less than zero
а.
с.
d. cannot be determined](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4ba9b67-45b8-446a-912c-a4e2525e73ee%2Fb58b8d20-ea7b-4f45-b436-68961a9d3ba3%2F2sif23_processed.png&w=3840&q=75)
Transcribed Image Text:8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at
the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs
are $20,000. Marginal cost is $8 per unit and rising. Economic profits
are equal to zero
b. are greater than zero
are less than zero
а.
с.
d. cannot be determined
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