Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its total variable cost is $350. This firm is incurring losses. is maximizing its profit. is making a profit, but not necessarily the maximum profit. should shut down in the short run.

correct option is maximizing its profit

Explanation:

given data

firm is selling  = 200 units

output = $3 each

fixed cost = $100

variable cost = $350

solution

we get here Total average cost that is

Total average cost = variable cost + fixed cost 1

put here value

Total average cost  = 350 + 100

Total average cost  = $450

and

Cost per unit will be

Cost per unit = average cost ÷ no of units   2

Cost per unit = 450  ÷  200

Cost per unit = $2.25

so here firm is incurring per units is $2.25 but here earning per unit is $3 .

so that here firm is earning economic profit

as here market price is greater than earning maximum profit

so correct option is maximizing its profit

decentralization can the employees to get more involved in the business decision making

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.