According to This Graph of a Perfectly Competitive Firm, What

question 14

Multiple Choice

According to this graph of a perfectly competitive firm, what is the firm's total profit?

• A) $42
• B) $56
• C) $80
• D) $168

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Definitions:

Sales Projections

Estimates of the future sales revenue of a company, which are often based on historical sales data, market trends, and other relevant factors.

NPV

Net Present Value, a calculation used to determine the value of an investment by discounting future cash flows to their present value.

Payback Analysis

A financial analysis method used to determine the time required to recoup the cost of an investment or project.

NPV

An evaluation method used to assess the profitability of an investment by calculating the difference between its current cash inflows and outflows, discounted to their present values.