Exhibit 10-7 -At the Profit-Maximizing Output Level, the Firm in Exhibit 10-7

question 4

Multiple Choice

Exhibit 10-7
-At the profit-maximizing output level, the firm in Exhibit 10-7 is

• A) earning economic profit of $760
• B) earning economic profit of $950
• C) earning zero economic profit
• D) earning economic profit of $990
• E) suffering a loss of $1,000

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Definitions:

Canon

A rule (for example, of proportion). The ancient Greeks considered beauty to be a matter of “correct” proportion and sought a canon of proportion, for the human figure and for buildings. The fifth-century BCE sculptor Polykleitos wrote the Canon, a treatise incorporating his formula for the perfectly proportioned statue. Also, a church official who preaches, teaches, administers sacraments, and tends to pilgrims and the sick.

Proportions

Proportions refer to the relationship in size between different parts of an object, artwork, or architectural design, ensuring harmony and balance in the visual appearance.

Aesthetics

The branch of philosophy that addresses the nature of beauty, especially in art.

Hierarchy Of Scale

A principle in art and architecture where the size of figures is determined by their importance relative to other figures, rather than by their location or physical proximity, commonly used in ancient, medieval, and non-Western art.