Answer the Question on the Basis of the Following Cost

question 21

Multiple Choice

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. $\begin{array}{ccccc}& \text { Average } & \text { Average } & \text { Average } & \\\text { Total } & \text { Fixed } & \text { Variable } & \text { Total } & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost }\\\hline1 & \$ 150.00 & \$ 25.00 & \$ 175.00 & \$ 25.00 \\2 & 75.00 & 23.00 & 98.00 & 21.00 \\3 & 50.00 & 20.00 & 70.00 & 14.00 \\4 & 37.50 & 21.00 & 58.50 & 24.00 \\5 & 30.00 & 23.00 & 53.00 & 31.00 \\6 & 25.00 & 25.00 & 50.00 & 35.00 \\7 & 21.43 & 28.00 & 49.43 & 46.01 \\8 & 18.75 & 33.00 & 51.76 & 68.07 \\9 & 16.67 & 39.00 & 55.67 & 86.95 \\10 & 15.00 & 48.00 & 63.00 & 128.97\end{array}$ Refer to the data.If the market price for this firm's product is $87,it will produce:

• A) 9 units at an economic profit of zero.
• B) 6 units at a loss of $90.
• C) 9 units at an economic profit of $281.97.
• D) 8 units at an economic profit of $130.72.

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Definitions:

Glare

A visual condition caused by excessive brightness from direct or reflected light, leading to discomfort or reduced visibility.

Smaller

Having less size, amount, or degree compared to something else.

White Light

Light that contains all wavelengths of visible light, appearing white to the human eye.

Saturated

In chemistry, refers to a molecule containing no double or triple carbon-carbon bonds, fully "saturated" with hydrogen atoms. In everyday language, it often means completely filled or soaked.