The Table Given Below Shows the Price Charged by a Firm

question 101

Multiple Choice

The table given below shows the price charged by a firm and the marginal cost incurred by it for the different levels of the output. Table 10.2

- What is the profit-maximizing output level for the monopoly firm described in Table 10.2 if the firm is earning a positive economic profit?

• A)1 unit
• B)2 units
• C)3 units
• D)5 units
• E)6 units

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Definitions:

Operating Expenses

Expenses incurred through normal business operations, such as salaries, rent, utilities, and office supplies, which are not directly tied to the production of goods or services.

Sales Revenue

Sales Revenue is the income received by a company from its sales of goods or the provision of services, before any costs or expenses are deducted.

Gross Profit Rate

The ratio of gross profit to net sales, representing the efficiency with which a company uses its resources to produce goods and services.

Operating Expenses

Costs associated with the day-to-day operations of a business that are not related to direct production.