Table 12-3 Arnie Sells Basketballs in a Perfectly Competitive Market. Table 12-3

question 79

Multiple Choice

Table 12-3

Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q) , total cost (TC) , average total cost (ATC) and marginal cost (MC) .
-Refer to Table 12-3.What price (P) will Arnie charge and how much profit will he earn if the market price of basketballs is $12.50?

• A)Price and profit cannot be determined from the information given.
• B)P = $12.50; profit = $52.50
• C)P = $12.50; profit = $22.50
• D)P = $20; profit = $75.00.

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Definitions:

Direct Materials Used

The actual amount of raw materials consumed in the production process of goods.

Work in Process Inventory

Inventory that includes all unfinished goods being manufactured at a given time.

Merchandise Inventory

Goods and products that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.