Answer the Question on the Basis of the Following Cost

question 86

Multiple Choice

Answer the question on the basis of the following cost data for a purely competitive seller: $$\begin{array} { c c c } \text { Output } & & \text { Total Cost } \\\hline0 & & \$ 50 \\1 & & 90 \\2 & & 120 \\3 & & 140 \\4 & & 170 \\5 & & 210 \\6 & & 260 \\7 & & 330\end{array}$$ Refer to the data.If product price is $60,the firm will:

• A) shut down.
• B) produce 4 units and realize a $120 economic profit.
• C) produce 6 units and realize a $100 economic profit.
• D) produce 3 units and incur a $40 loss.

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Definitions:

Planning Budget

A budget created for a specific period in the future, outlining expected revenue, expenses, and resource needs.

Vehicle Operating Cost

The total expense associated with maintaining and running a vehicle, including fuel, maintenance, insurance, and depreciation.

Snow-Day

A colloquial term typically referring to a day when schools or businesses are closed due to excessive snowfall that impedes travel and regular operations.

Other Expenses

Expenditures that are not directly related to the production of goods or services, such as administrative and selling expenses.