Answer the Question on the Basis of the Following Demand

question 131

Multiple Choice

Answer the question on the basis of the following demand and cost data for a specific firm. If columns 1 and 3 are this firm's demand schedule, maximum economic profit will be

• A)$60.
• B)$70.
• C)$90.
• D)$80.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Those costs, primarily labor and materials, that vary with production volume.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Market Competitiveness

The ability of a company or product to compete effectively in the marketplace based on factors like price, quality, and innovation.