Answer the Question on the Basis of the Following Demand

question 62

Multiple Choice

Answer the question on the basis of the following demand and cost data for a specific firm: $\begin{array}{c}\underline{\text { Demand Data}}\quad\quad\quad\quad\quad\underline{\text { Cost Data}} \\\begin{array}{c}\text { (1) }\\\underline{\text { Price } }\\ \$ 11.00 \\9.99 \\9.00 \\8.00 \\7.10 \\6.00 \\5.15\end{array}\begin{array}{c}\text { (2) }\\\underline{\text { Price}}\\\$ 10.00 \\8.85\\8.00\\7.00\\6.10\\5.00\\4.15\end{array}\begin{array}{c}\text { (3) }\\\underline{\text { Quantity}}\\6 \\7 \\8 \\9 \\10 \\11 \\12\end{array}\begin{array}{c}\\\underline{\text { Output }} \\6 \\7 \\8 \\9 \\10 \\11 \\12 \end{array}\begin{array}{c}\text { Total}\\\underline{\text { Cost}} \\ \$ 61 \\62 \\64 \\67 \\72 \\79 \\86\end{array}\end{array}$
Refer to the data.If columns (1) and (3) of the demand data shown are this firm's demand schedule,economic profit will be:

• A) $10.
• B) $19.
• C) $6.
• D) $8.

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Definitions:

Production Function

A production function is an equation that describes the maximum output of a good or service an economy or firm can produce given the input resources it has available.

Labor

The human effort, whether physical or mental, used in the production of goods and services.

Output

The total amount of goods or services produced by a firm, industry, or economy.

Cost

The total expenditure required to produce a good or service, including materials, labor, and other expenses.