P = 38
MC = 38
FC = 2000
TC = 10000
VC = TC - FC = 10000 - 2000 = 8000
Q = 200
AVC = VC / Q = 8000 / 200 = 40
ATC = TC / Q = 10000 / 200 = 50
Profit = (P-ATC) * Q = (38 - 50) * 200 = -12 * 200 = -2400 (Loss)
option A, B, D & E are wrong
So only option C is the corrrect answer as AVC > P (40 > 38)
#6 e. judge. 6. Assume a perfeetly competitive firm incurs a total cost of $10,000, marginal...
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