The Following Table Gives the Average Total Cost of Production

question 151

Multiple Choice

The following table gives the average total cost of production for various levels of output for a competitive price-taker firm
If the firm's fixed cost of production is $3 and the market price is $10, how many units should the firm produce to maximize its profit?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Gangrene

The death of body tissue due to either a lack of blood flow or a serious bacterial infection.

Scabies

A contagious skin infestation caused by the mite Sarcoptes scabiei, characterized by intense itching and small raised red spots.

Pustule

A tiny bump on the skin filled with pus, resembling a blister or pimple.

Macule

A flat, distinct, discolored area of the skin that is not raised above the surface.