Answer the Question on the Basis of the Following Data

question 46

Multiple Choice

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,and labor and capital are the only inputs,the firm's economic profits will be:

• A) $102.
• B) $82.
• C) $67.
• D) $28.

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Definitions:

Losses

Negative financial outcomes resulting from the cost of operations exceeding revenue or from other financial transactions.

Shut Down

A short-run decision by a firm to cease production due to unfavorable market conditions, not covering variable costs.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and loan payments, remaining constant regardless of business activity levels.

Total Revenue

The total amount of money a firm receives by selling goods or services, calculated as the unit price times the quantity sold.