The Following Table Shows the Total Revenue (In Dollars)and Total

question 36

Multiple Choice

The following table shows the total revenue (in dollars) and total cost (in dollars) from the production and sale of different units of a product.
Table 2-1

-Refer to Table 2-1.What is the profit-maximizing level of output for the firm?

• A)3 units
• B)2 units
• C)1 unit
• D)5 units
• E)4 units

---

Definitions:

Marginal Product

The increase in output that results from employing one more unit of a specific input, holding all other inputs constant.

Bushels

A unit of volume that is used in the United States for measuring agricultural products, such as grains.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, holding all other inputs constant.

Total Product Curve

A graphic representation showing how the total quantity of output of a firm changes as the quantity of an input is changed, holding all other inputs constant.