Table 11-5 Table 11-5 Shows the Demand and Cost Data Facing a Price

question 222

Multiple Choice

Table 11-5
$\begin{array}{|c|c|c|}\hline \text { Quantity } & \text { Price } & \text { Total Cost } \\\hline 1 & \$ 18 & \$ 14 \\\hline 2 & 16 & 20 \\\hline 3 & 14 & 26 \\\hline 4 & 12 & 32 \\\hline 5 & 10 & 38 \\\hline 6 & 8 & 44 \\\hline\end{array}$ Table 11-5 shows the demand and cost data facing a monopolistically competitive producer of canvas bags.
-Refer to Table 11-5.At the profit-maximizing or loss-minimizing output level

• A) the firm makes a profit of $12.
• B) the firm incurs a loss equal to its fixed cost.
• C) the firm makes a profit of $16.
• D) the firm incurs a loss of $14.

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Definitions:

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Ethical Character

The set of qualities related to principles of right and wrong behavior that guide an individual's actions and decisions.

Ending Retained Earnings

The cumulative amount of a company's earnings not distributed to shareholders as dividends but retained by the company for reinvestment or to pay debt.