Refer to the Data Provided in Table 9 -Refer to Table 9

question 350

Multiple Choice

Refer to the data provided in Table 9.4 below to answer the question(s) that follow.
Table 9.4
$$\begin{array} { c c c c c c c } \text { q } & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } & \text { AVC } & \text { ATC } \\\hline 0 & \$ 100 & \$ 0 & \$ 100 & - - & - - & - - \\\hline 1 & 100 & 40 & 140 & 40 & 40 & 140 \\\hline 2 & 100 & 60 & 160 & 20 & 30 & 80 \\\hline 3 & 100 & 90 & 190 & 30 & 30 & 63.33 \\\hline 4 & 100 & 124 & 224 & 34 & 31 & 56 \\\hline 5 & 100 & 180 & 280 & 56 & 36 & 56 \\\hline 6 & 100 & 264 & 364 & 84 & 44 & 60.67 \\\hline 7 & 100 & 372 & 472 & 108 & & 67.42 \\\hline\end{array}$$
-Refer to Table 9.4. If the market price is $40, then to maximize profits this firm should produce

• A) zero units of output.
• B) one unit of output.
• C) two units of output.
• D) an output level of about four.

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Definitions:

Indentured Servitude

A labor system where people paid for their passage to the New World by working for an employer for a fixed term of years.

Enslaved Labor

The forced work that individuals must perform without consent and for no pay, often under threat of punishment.

Chesapeake

A geographical area in the United States known for the Chesapeake Bay, an estuary lying inland from the Atlantic Ocean, surrounded by Maryland and Virginia.

Navigation Acts

were a series of laws passed by the British Parliament that regulated trade between England and its colonies, designed to ensure that trade enriched Britain.