The Table Shows a Total-Product Schedule for a Resource

question 38

Multiple Choice

The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. If the firm can produce 24 units at a price of $1.00, 42 units at a price of $0.80, and 54 units at a price of $0.60, then the firm is

• A)selling in a purely competitive market.
• B)selling in an imperfectly competitive market.
• C)minimizing its costs at a product price of $1.00.
• D)maximizing profits at a product price of $0.60.

---

Definitions:

Positive NPV Projects

Investment opportunities where the net present value (NPV) is greater than zero, indicating that they are expected to generate a profit.

High Dividend Payout

The practice of distributing a large portion of a company's earnings to its shareholders in the form of dividends.

Distribution

The process of allocating assets, earnings, or dividends among shareholders, or the spread of investments within a portfolio.

Corporate Dividend Payout

The portion of earnings distributed to shareholders in the form of dividends.