Table 83 -Refer to Table 8

question 169

Multiple Choice

Table 8.3
$\begin{array}{cc}\begin{array}{c}\text { Quantity } \\\text { of Output }\end{array} & \begin{array}{c}\text { Total } \\\text { Cost (\$) }) \end{array} \\\hline 0 & 50 \\10 & 85 \\20 & 150 \\30 & 220 \\40 & 305 \\50 & 455\end{array}$
-Refer to Table 8.3,which shows the output supplied by a firm and its total cost of production.If the market price is $8.50,the profit-maximizing output and profit are _____

• A)40 units and $35, respectively.
• B)40 units and $0, respectively.
• C)0 units and ?$50, respectively.
• D)30 units and $25, respectively.
• E)50 units and $30, respectively.

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Definitions:

Specialization

A production strategy where individuals, regions, or nations focus on the production of a limited scope of goods or services to gain greater efficiency and productivity.

Economies of Scale

Economies of Scale describe the cost advantages that a business can achieve due to expansion, leading to a lower cost per unit of output.

Long-run Average Total Costs

The per-unit production cost when all factors of production are variable and optimized for scale.

Long-run Average Total Cost

The per-unit cost of production when all inputs, including those typically fixed, can be varied, showing economies of scale if downward sloping.