Table 13-4 Table 13-4 Lists Estimated Revenues and Costs (Per Week)for Plastic

question 246

Multiple Choice

Table 13-4

Table 13-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories.
-Refer to Table 13-4.At Victoria's profit-maximizing output,

• A)profit equals $2.
• B)total revenue equals $24 and total cost equals $20.
• C)total revenue equals $25 and total cost equals $22.
• D)total revenue equals $21 and total cost equals $17.

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Definitions:

Mean Reversion

The financial theory suggesting prices and returns eventually move back towards the mean or average.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

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