Refer to the Information Provided in Table 8 -Refer to Table 8

question 105

Multiple Choice

Refer to the information provided in Table 8.7 below to answer the following question(s) .
Table 8.7 $$\begin{array} { c c l r r } \begin{array} { c } \hline\text { Number of } \\\text { cruit Baskets }\end{array} & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } \\\hline 0 & \$ 50 & \$ 0 & \$ 50 & - - \\1 & 50 & 10 & 60 & 10 \\2 & 50 & 15 & 65 & 5 \\3 & 50 & 21 & 71 & 6 \\4 & 50 & 31 & 81 & 10 \\5 & 50 & 46 & 96 & 15 \\6 & 50 & 68 & 118 & 22\\\hline \end{array}$$
-Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.

• A) three; $5
• B) four; $7
• C) five; $14
• D) six; $14

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Definitions:

Compensating Wage Differential

Additional wages paid to workers to compensate them for undesirable job characteristics, such as poor working conditions or long hours.

Unfavorable Conditions

Circumstances that are not conducive to success or are disadvantageous to achieving goals.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.

Firemen

Professionals dedicated to fighting fires, conducting rescue operations, and managing emergency situations that pose a threat to life, property, and the environment.