The Table Below Provides the Total Revenues and Costs for a Small

question 112

Multiple Choice

The table below provides the total revenues and costs for a small landscaping company in a recent year.
TABLE 7-2
-Refer to Table 7-2.The economic profits for this firm are

• A)$63 500.
• B)$32 700.
• C)$33 500.
• D)$31 200.
• E)$32 300.

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Definitions:

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.

Short Run

A period of time during which at least one of a firm's inputs is fixed, affecting the firm's capacity to adjust to demand changes.

Short Run

The short run is a period in economics where at least one factor of production is fixed, limiting the adjustments a firm can make to its inputs.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the cost of producing one more unit of output.