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

question 193

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. At a market price of $56, if the firm produces where MR = MC, then it would produce ________ units of output and earn an economic profit of ________.

• A) 0; -$100
• B) 4; $0
• C) 5; $0
• D) either 4 or 5; $0

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Definitions:

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.

Marijuana

A psychoactive drug from the Cannabis plant, used for medical or recreational purposes.

Shipment Seized

Refers to the action taken by authorities to take control of goods being transported due to regulatory, legal, or security violations.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition.