Demand and Total Cost of Production The following questions refer to the followi

Question

Demand and Total Cost of Production

The following questions refer to the following tables which show the demand for a firm's product and the firm's total cost of production.

Demand

Total Cost

Quantity

Price

Quantity

Dollars

0 units

$35 per unit

0 units

$ 0

1      

30        

1      

  4

2      

25        

2      

  11

3      

20        

3      

  21

4      

15        

4      

  34

5      

10        

5      

  50

Refer to Demand and Total Cost of Production. The profit from selling two units would be

Question 14 options:

1)

2)

3)

4)

Demand

Total Cost

Quantity

Price

Quantity

Dollars

0 units

$35 per unit

0 units

$ 0

1      

30        

1      

  4

2      

25        

2      

  11

3      

20        

3      

  21

4      

15        

4      

  34

5      

10        

5      

  50

Explanation / Answer

Answer
Profit=total revenue-total cost
total revenue=P*Q
=2*25=50
TC=11
profit=50-11=$39
Option 2

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