Using the Above Short Run Cost Data, Find the Amount

question 11

Multiple Choice

Using the above short run cost data, find the amount of profit the firm would make at the profit maximizing output.

• A) none - the firm would shut down
• B) $57.83
• C) $60.25
• D) -$57.83
• E) -$60.25

---

Definitions:

FICA

Stands for Federal Insurance Contributions Act, specific U.S. legislation that funds Social Security and Medicare through payroll taxes.

Seller Bears

Refers to situations where the seller is responsible for any additional costs or risks associated with a transaction.

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, contributions are made by both employees and employers.

Burden Falls

An economic term referring to how the costs or economic burdens of a policy, tax, or regulation are distributed among various stakeholders.