Exhibit 14 -Refer to Exhibit 14

question 10

Multiple Choice

Exhibit 14.2.
$\begin{array} { | c | c | c | c| } \hline \text { Quantity } & \text { Fixad Cust } & \text { Marginal Cast } & \text { Avg. Variable Cost } \\\hline 1 & \$100 & \$52 & \$5 2 \\\hline 2 & 100 & 44 & 48 \\\hline 3 & 100 & 37 & 44.33 \\\hline 4 & 100 & 31 & 41 \\\hline 5 & 100 & 26 & 38 \\\hline\end{array}$
-Refer to Exhibit 14.2. If the market price is $26, what quantity should the firm produce in order to maximize profits.

• A) 5
• B) 0
• C) 26

---

Definitions:

Interval Data

Interval data is a type of quantitative data where the intervals between values are meaningful, but there is no true zero point, allowing for the measurement of differences but not relative sizes or ratios.

Series

The sum of a sequence of terms in a specific order, often related to mathematical or statistical analysis.

Relative Frequency

The proportion of times a certain value or category appears in a dataset relative to the total number of observations.

Histogram

A graphical representation of the distribution of numerical data, typically shown as bars indicating the frequency of data points within specified intervals.