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:

Variance

A measure of the dispersion or spread of a set of data points around their mean.

Standard Deviation

An indicator of the degree of spread or variability among a collection of numbers.

Variance

A measure of the dispersion of a set of data points around their mean; shows how much the data vary from the average.

Binomial Distribution

A probability distribution that summarizes the likelihood of a variable to take one of two independent values under a given number of iterations.