Table 9-1 Table 9-1 Shows the Short-Run Cost Data of a Perfectly

question 234

Multiple Choice

Table 9-1
$\begin{array}{|c|c|c|}\hline \text { Quantity } & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Variable Cost } \\\text { (dollars) }\end{array} \\\hline 0 & \$ 1,000 & \$ 0 \\\hline 100 & 1,360 & 360 \\\hline 200 & 1,560 & 560 \\\hline 300 & 1,960 & 960 \\\hline 400 & 2,760 & 1,760 \\\hline 500 & 4,000 & 3,000 \\\hline 600 & 5,800 & 4,800 \\\hline\end{array}$ Table 9-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 9-1.If the market price of each camera case is $8 and the firm maximizes profit,what is the amount of the firm's profit or loss?

• A) $0 (it breaks even)
• B) loss of $1,000
• C) profit of $440
• D) loss of $440

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Definitions:

Mechanical Calculator

A device used to perform mathematical operations, manually operated before the advent of electronic calculators.

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Electronic devices that control the flow of electrons through a vacuum, used in early radios, televisions, and computers before the advent of semiconductor devices.