Given the Accompanying Table, What Is the Short-Run Profit-Maximizing Level

question 31

Multiple Choice

Given the accompanying table, what is the short-run profit-maximizing level of output for the firm? $\begin{array} { | c | c | c| } \hline \text { Output } & \text { Total Reverue } & \text { Total Cost } \\\hline 1 & \$ 4 & 2 \\\hline 2 & 8 & 3 \\\hline 3 & 12 & 6 \\\hline 4 & 16 & 9 \\\hline 5 & 20 & 14 \\\hline\end{array}$

• A) 2 units
• B) 3 units
• C) 4 units
• D) 5 units

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Innovation

The creation and development of a new product or service.

Participation Error

The bias or error that can occur in research or decision-making processes when not all relevant parties are included or accurately represented.

Framing Error

The tendency to highlight certain aspects of a situation depending on whether they are positive or negative to solve a problem while ignoring other aspects.