Figure 7-4 Figure 7-4 Shows the Cost and Demand

question 239

Multiple Choice

Figure 7-4 Figure 7-4 shows the cost and demand curves for a profit-maximising firm in a perfectly competitive market.
-Refer to Figure 7-4.Assuming the firm is profit maximising,what is the amount of its total fixed cost?

• A) $1080
• B) $1440
• C) $2520
• D) It cannot be determined.

---

Definitions:

Allowance Factor

A factor used in planning and scheduling to account for potential deviations from standard or expected performance.

Performance Rating

Represents a quantitative measure designed to evaluate the efficiency and productivity of an employee or a machine in the workplace.

Allowances

Financial compensations or extra quantities given to cover specific needs or requirements.

Normal Time

The estimated duration required to complete a task under normal working conditions.