Table 12-1 Table 12-1 Shows the Short-Run Cost Data of a Perfectly

question 22

Multiple Choice

Table 12-1

Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 12-1.If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?

• A)$0 (it breaks even)
• B)loss of $1,000
• C)profit of $440
• D)loss of $440

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Definitions:

Direct Materials

The raw materials directly traced and integral to the finished product in the manufacturing process.

Work in Process

Inventory that includes goods partially through the production process but not yet complete.

Machinery Repairs

Machinery Repairs refer to the act of restoring equipment or machinery to a condition where it can operate as intended, involving fixing and replacing parts as necessary.

Maintenance

The process of preserving equipment, systems, buildings, and other assets in working order or restoring them to proper condition.