Table 83 Arnie Sells Basketballs in a Perfectly Competitive Market

question 196

Multiple Choice

Table 8.3 Arnie sells basketballs in a perfectly competitive market.Table 8.3 summarises Arnie's output per day (Q) , total cost (TC) , average total cost (ATC) and marginal cost (MC) .
-Refer to Table 8.3.What price (P) will Arnie charge and how much profit will he earn if the market price of basketballs is $12.50?

• A)Price and profit cannot be determined from the information given.
• B)P = $12.50; profit = $52.50
• C)P = $12.50; profit = $22.50
• D)P = $20; profit = $75.00.

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Definitions:

Arable Land

Land capable of being ploughed and used to grow crops, indicating a measure of a region’s ability to support agricultural activities.

Cash Crops

Agricultural products grown primarily for sale to return a profit, such as tobacco, cotton, and sugar, rather than for consumption by the farmer's family.

Grain Production

involves the farming of grains such as wheat, corn, and rice, which are staple foods for a large portion of the world’s population.

Body Servants

Enslaved or servant individuals who worked closely with their masters or mistresses, performing personal tasks such as dressing, bathing, and grooming; these roles often, but not exclusively, existed within the context of slavery.