Table 81 Table 8

question 258

Multiple Choice

Table 8.1 Table 8.1 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 8.1.If the market price of each camera case is $8 and the firm maximises profit, what is the amount of the firm's profit or loss?

• A)$0 (it breaks even)
• B)Loss of $1000
• C)Profit of $440
• D)Loss of $440

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Definitions:

Contribution

The portion of sales revenue that exceeds variable costs, contributing toward covering fixed costs and generating profit.

Solution Panel

A group or platform designed to bring together experts or technologies to solve specific problems or challenges.

Feasible Region

In operations research and optimization, the set of all possible points that satisfy a series of constraints, typically within linear programming problems.

Objective Function

A mathematical formula that defines the goal of an optimization problem, often involving minimizing or maximizing some quantity.