The Figure Shows the Graphs of the Cost and Revenue

question 5

Multiple Choice

The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells binoculars. Use the information in the figure to answer the question.

-Is there a profit when 956 binoculars are produced?

• A)No
• B)Yes

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Definitions:

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to increase production.

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to changes.

Total Revenue

Total revenue is the total income generated by a company from its sales of goods or services before any expenses are subtracted.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.