The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10. If its economic profit is $20,000, then it must be producing:
A)40,000 units of output.
B)20,000 units of output.
C)30,000 units of output.
D)10,000 units of output.
E)50,000 units of output.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10. If its economic profit is $20,000, then it must be producing:
A)40,000 units of output. 
B)20,000 units of output. 
C)30,000 units of output. 
D)10,000 units of output. 
E)50,000 units of output.

Quizplus · Accepted Answer

The Answer of The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10. If its economic profit is $20,000, then it must be producing:
A)40,000 units of output. 
B)20,000 units of output. 
C)30,000 units of output. 
D)10,000 units of output. 
E)50,000 units of output.

The Figure Given Below Shows Three Short Run Average Total