Marginal Cost of Production

question 21

Multiple Choice

Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

-Refer to Marginal Cost of Production.Suppose the firm's fixed costs increase to $100,and demand for the firm's product remains horizontal at a price of $24 per unit.What is the firm's maximum profit?

• A) $-9.
• B) $ 9.
• C) $68.
• D) $71.

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Definitions:

Subsidiary Ledgers

Detailed ledgers that contain information captured in the general ledger, broken down into specific categories like customers, suppliers, or assets.

Owner's Capital

The amount of money and other assets contributed by the owner(s) to a business, plus the retained earnings minus any withdrawals.

Accounts Receivable

Amounts owed to a business by its customers for goods or services sold on credit.

Subsidiary Ledger

A detailed ledger that contains the individual accounts needed to support a major ledger account, such as accounts receivable, where individual customer accounts are detailed.