The Table Given Below Shows the Price Charged by a Firm

question 80

Multiple Choice

The table given below shows the price charged by a firm and the marginal cost incurred by it for different levels of the output.Table 11.2

-What is the profit-maximizing level of output for the monopoly firm described in Table 11.2, if the firm is earning a positive economic profit?

• A)1 unit
• B)2 units
• C)3 units
• D)5 units
• E)6 units

---

Definitions:

Capital Gains

The increase in value of an asset or investment over time, realized upon the sale of that asset.

Residual Dividend Policy

A strategy where dividends paid to shareholders are set as the remaining profits after all project financing and working capital needs are met.

Capital Budget

The process and plan for determining and allocating resources, such as funds and investments, towards major long-term expenditures or projects of a company or government.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total earnings.