Multiple Choice
Scenario 9.1: 21st Century Pen, Inc. produces 2,000 pens per day, and hires 20 workers at a cost of $200 per day per worker. The price of each pen is $5 each. 21st Century Pen, Inc. pays a daily rental rate of $60 on its factory and a daily insurance rate of $20. 21st Century Pen, Inc. has a ten year lease on the factory, an insurance contract for a year, and the company has no other expenses.
-Refer to Scenario 9.1.21st Century Pen,Inc.will earn positive economic profit as long as price is
A) greater than average variable cost.
B) greater than average total cost.
C) greater than marginal cost.
D) greater than average fixed cost.
Correct Answer:
Verified
Correct Answer:
Verified
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