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A Perfectly Competitive Firm Maximizes Profit by Producing 500 Units

Question 40

Multiple Choice

A perfectly competitive firm maximizes profit by producing 500 units of output, selling each unit for $10. The firm's average variable cost is $7 and average fixed cost is $2. What is the firm's producer surplus?


A) $500
B) $1,500
C) $1,000
D) $1

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