Exhibit 8-10 Price and Cost Data for a Firm -In Exhibit 8-10, Following the Rule Regarding MR and MC

question 178

Multiple Choice

Exhibit 8-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | } \hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \\\hline 0 & \$ 12 & - & - & - \\1 & 12 & 3 & 5 & 5 \\2 & 12 & 5 & 6 & 7 \\3 & 12 & 7.3 & 8 & 12 \\4 & 12 & 9.5 & 10 & 16 \\\hline\end{array}$$
-In Exhibit 8-10, following the rule regarding MR and MC, the most profitable output level is:

• A) 0.
• B) 1.
• C) 2.
• D) 3.
• E) 4.

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Definitions:

Sacrum

A large, triangular bone at the base of the spine that forms by the fusion of vertebrae, uniting with the pelvis.

Joint Cavity

The space between the articulating surfaces of bones in a synovial joint, filled with synovial fluid that lubricates the joint.

Fibrous Joint

Bones connected by fibrous tissue with no joint cavity; includes sutures, syndesmoses, and gomphoses.

Synovial

Relating to or containing synovia (a substance that serves as a lubricant in a joint, tendon sheath, or bursa).