The following table shows the total cost incurred by a firm to produce different

Question

The following table shows the total cost incurred by a firm to produce different levels of output. It also shows the price that consumers are willing to pay for each level of output Quantity Price 80 Total Cost 65 57 48 100 140 184 235 290 7 Refer to the table above. The firm n the short run O A. incurs a loss of $22 O B. incurs a loss of $76 OC. earns a profit of $76 O D. earns a profit of $22 Click to select your answer pay high shows an important consequence of a progressi average taxes and higher marginal taxes." tax system the rich earn a high share of the national income but pay even a higher share of total taxes. For example, the richest

Explanation / Answer

C.

Quantity Price Total cost Total Revenue Profit Marginal Cost Marginal revenue $ $ 1 80 55 80 25 - - 2 77 100 154 54 45 74 3 72 140 216 76 40 62 4 65 184 260 76 44 44 5 57 235 285 50 51 25 6 48 290 288 -2 55 3 Total revenue-total cost= Profit Marginal cost is the additional cost of producing one more unit, marginal revenue is the additional revenue earned by producing one more unit The profit maximization for a firm in the short run is when MR=MC.

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