Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999, the firm's profits equal $4,990. O $5,000. $5,020. $4,980.

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999, the firm's profits equal $4,990. O $5,000. $5,020. $4,980.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter21: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 8CQ

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost
equals $10 and its average total cost equals $25. The firm sells its output for $30 per unit. At Q = 999,
the firm's profits equal
$4,990.
O $5,000.
$5,020.
$4,980.

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