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Scorpion4ik [409]
3 years ago
10

Suppose the firm faces a price of ​$49​, an average variable cost of ​$26​, and has an average fixed cost of ​$5. In the​ short-

run, this firm
A. can cover all its​ costs,
B. cannot cover all its​ costs,
A. and will have a loss per unit of ​$18.
B. and will have a profit per unit of ​$23.
C. and will have a profit per unit of ​$18 .
D. and will have a loss per unit of ​$23.
Business
1 answer:
pychu [463]3 years ago
3 0

Answer:

A) can cover all its​ costs, ⇒ C) and will have a profit per unit of ​$18.

Explanation:

The company sells its products at $49 per unit, and each unit's total cost is $31 (= $26 variable costs + $5 fixed costs), therefore the company is covering all its costs and making an $18 profit (= $49 - $31) for each unit is sells.

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