Table 10-2 The Government of a Small Developing Country Has Granted Exclusive

question 149

Multiple Choice

Table 10-2
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Quantity per } \\\text { Day (cases) }\end{array} & \begin{array}{c}\text { Price per } \\\text { Case }\end{array} & \text { Total Cost } \\\hline 1 & \$ 16 & \$ 7.00 \\\hline 2 & 15 & 9.50 \\\hline 3 & 14 & 11.00 \\\hline 4 & 13 & 12.00 \\\hline 5 & 12 & 14.50 \\\hline 6 & 11 & 17.50 \\\hline 7 & 10 & 21.00 \\\hline 8 & 9 & 25.00 \\\hline 9 & 8 & 30.00 \\\hline 10 & 7 & 35.50 \\\hline\end{array}$ The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. Table 10-2 shows the cost and demand data for this government-protected monopolist.
-Refer to Table 10-2.What is the amount of profit that the firm earns?

• A) $34.50
• B) $42
• C) $47
• D) $49

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed for operations. It is an important measure of financial performance and liquidity.

Capital Expenditures

Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its business operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Free Cash Flow

The amount of cash generated by a business after accounting for operating expenses and capital expenditures, available for distribution among shareholders.