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
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Chapter1: Making Economics Decisions
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e. judge.
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 earns an economic profit of $7,600.
b. The firm incurs an economic loss of $7,600.
FOR 2000185= 7,600
tess 7,600-10,00-3500
$12000/200=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.
e. The firm earns an economic profit of $6,600.
Transcribed Image Text:e. judge. 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 earns an economic profit of $7,600. b. The firm incurs an economic loss of $7,600. FOR 2000185= 7,600 tess 7,600-10,00-3500 $12000/200=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. e. The firm earns an economic profit of $6,600.
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