Based on the Table Below, What Is the Maximum Amount

question 103

Multiple Choice

Based on the table below, what is the maximum amount of profit this firm could earn? $$\begin{array} { c c c } \mathrm { Q } & \mathrm { P } & \mathrm { TC } \\\hline 98 & \$ 51.25 & \$ 1,000 \\99 & \$ 51.00 & \$ 1,025 \\100 & \$ 50.75 & \$ 1,075 \\101 & \$ 50.50 & \$ 1.175 \\102 & \$ 50.25 & \$ 1,350\end{array}$$

• A)$1,000
• B)$1,350
• C)$5,049.00
• D)$5,125.50
• E)none of the above

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Definitions:

Income Effect

The Income Effect refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

the component of the total effect of a price change on consumption that results from the consumer substituting the good that has become relatively cheaper for the good that has become relatively more expensive.

Leisure Time

Leisure time is the period when one is not engaged in work or other obligations, available for relaxation, hobbies, and personal activities.

Hourly Wages

Compensation paid to employees based on the number of hours worked, critical in calculating labor costs and income.