Refer to the Information Provided in Table 8 $\text {Number of}$

question 19

Multiple Choice

Refer to the information provided in Table 8.6 below to answer the question(s) that follow.
Table 8.6 $\text {Number of}$
$\begin{array}{llllllll}\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\\\hline0 & & & & && \\1 & 10& & & & \\2 & & 5& & & &15& \\3 & & & & &55& \\4 & & &10 & & & \\5 & & & & &90&\\\hline\end{array}$


-Refer to Table 8.6. If the firm is in a perfectly competitive industry with a market price of $15 per unit, the firm will produce ________ units and earn a profit of ________.

• A) three; $10
• B) four; $10
• C) four; -$10
• D) five; $15

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Definitions:

Communications Budget

The allocation of funds dedicated to all forms of communication by an organization, including advertising, public relations, social media, and more, designed to promote the organization's products or services.

Competitive-Parity Method

A budgeting technique in marketing where a company matches its advertising spending to that of its competitors to prevent loss of market share.

Percentage-of-Sales Method

A budgeting technique where advertising and promotions budget is set based on a fixed percentage of past or forecasted sales.

Task-Based Method

A methodology focused on completing specific tasks as a means of learning, organizing work, or achieving objectives, often used in educational contexts and project management.