Suppose Chris Is a Potter Who Makes Mugs If the Market for Mugs Is Perfectly Competitive, and Mugs

question 158

Multiple Choice

Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table. $$\begin{array} { | c | c | } \hline \text { Number d Mugs Per Day } & \text { Tatal Cast Per Day } \\\hline 0 & \$ 10 \\\hline 1 & \$ 14 \\\hline 2 & \$ 19 \\\hline 3 & \$ 25 \\\hline 4 & \$ 32 \\\hline 5 & \$ 40 \\\hline 6 & \$ 49 \\\hline\end{array}$$  
If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.

• A)loss; $2
• B)loss; $10
• C)profit; $2
• D)profit; $30

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Definitions:

Divisional Departmentalization

Organizing a business into divisions, each of which is responsible for its own set of related products, services, or market sectors.

Functional Departmentalization

The process of organizing a business or organizational structure based on the primary functions performed within the organization.

Task-technology Intervention

The application or implementation of technological solutions designed to improve the execution and efficiency of specific tasks.

Employees

Individuals officially hired to perform specific duties and work for businesses or organizations in exchange for compensation.