Table 9-4 Table 9-4 Shows the Short-Run Cost Data of a Perfectly

question 288

Multiple Choice

Table 9-4
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \begin{array}{c}\text { Average } \\\text { Fixed Cost }\end{array} & \begin{array}{c}\text { Average } \\\text { Variable Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} \\\hline 20 & \$ 40 & \$ 18 & \$ 18 \\\hline 40 & 20 & 14 & 10 \\\hline 60 & 13.1 & 16 & 20 \\\hline 80 & 10 & 22 & 40 \\\hline 100 & 8 & 30 & 62 \\\hline 120 & 6.61 & 40 & 90 \\\hline\end{array}$ Table 9-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units.
-Refer to Table 9-4.If the market price is $45,the firm

• A) earn a profit of $3,600.
• B) will suffer a loss of $200.
• C) will break even.
• D) will earn profit of $1,040.

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Definitions:

Hypertension Prevention

Strategies and lifestyle adjustments aimed at reducing the risk of developing high blood pressure.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, commonly measured to assess heart health.

Hypoxia

A medical condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level, which can lead to various symptoms and health issues.

Cyanosis

A bluish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.