A Firm Produces 10 Widgets That They Sell for $15

question 11

Multiple Choice

A firm produces 10 widgets that they sell for $15 each. The average variable cost for the production of 10 widgets is $13/unit. The fixed costs for this firm equal $20. What is the value of this firm's profits?

• A) -$20
• B) -$2
• C) 0
• D) $20

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Definitions:

Universal Instantiation

A logical rule that infers from the truth of a universally quantified statement about all members of a domain, the truth of that statement about any specific member.

Quantifier Negation

The process of applying negation to a statement that contains a quantifier, altering its scope and possibly changing the quantifier type (for example, from universal to existential).

Existential Generalization

A logical operation that infers the existence of at least one object in a domain that satisfies a given proposition.

Existential Instantiation

A logical rule that deduces the existence of at least one instance of a predicate from a general statement.