Author Question: Firm A charges 8.50 for each unit of Good X. If the average total cost of producing 1,000 units of ... (Read 72 times)

DelorasTo · **on:** Jun 29, 2018

Firm A charges 8.50 for each unit of Good X. If the average total cost of producing 1,000 units of Good X is 12 and the market for Good X is monopolistically competitive, Firm A ________ by producing 1,000 units of Good X.

A) earns a profit of 3,500
B) earns a profit of 1,000
C) incurs a loss of 1,000
D) incurs a loss of 3,500

Question 2

Which of the following examples best describes the concept of free entry?

A) Jack has an old cell phone that he wants to sell. He opens an account on eBay and auctions it off.
B) Purecircuit Cor