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