Table 11-4 Table 11-4 Lists Estimated Revenues and Costs (Per Week) for }
\end{array}

question 125

Multiple Choice

Table 11-4
$\begin{array}{|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { Sold }\end{array} & \text { Price } & \begin{array}{c}\text { Total } \\\text { Revenue }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Revenue }\end{array} & \begin{array}{c}\text { Total } \\\text { Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} & \text { Profit } \\\hline 0 & \$ 10 & \$ 0 & \cdots &\$ 2& \ldots & -\$ 2 \\\hline 1 & 9 & 9 & & 82 & \\\hline 2 & 8 & 16 & & 13 & & \\\hline 3 & 7 & 21 & & 17 & & \\\hline 4 & 6 & 24 & & 20 & & \\\hline 5 & 5 & 25 & & 22 & & \\\hline 6 & 4 & 24 & & 26 & & \\\hline\end{array}$ Table 11-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories.
-Refer to Table 11-4.At Victoria's profit-maximizing output

• A) profit equals $2.
• B) total revenue equals $24 and total cost equals $20.
• C) total revenue equals $25 and total cost equals $22.
• D) total revenue equals $21 and total cost equals $17.

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Definitions:

Present Value

The current valuation of money to be received in the future or ongoing cash flows, based on a predetermined return rate.

Future Value

The value of an investment or sum at a specific future date, accounting for factors like interest rates or dividends.

Relevant Interest Rate

The appropriate rate used for discounting future cash flows or evaluating investment opportunities, reflecting the cost of capital.

Opportunity Cost

The cost of forfeiting the next best alternative when making a decision or investment.