Table 12-3 Arnie Sells Basketballs in a Perfectly Competitive Market. Table 12-3

question 192

Multiple Choice

Table 12-3

Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q) , total cost (TC) , average total cost (ATC) and marginal cost (MC) .
-Refer to Table 12-3.What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00?

• A)Q = 1; profit = -$10.
• B)Q = 3; profit = -$7.50
• C)Q = 0; profit = -$10.00
• D)Price and profit cannot be determined from the information given.

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Definitions:

Total Revenue

The total amount of money generated by a business through its sales of goods or services before any expenses are deducted.

Price Raised

An increase in the cost of a good or service to consumers.

Perfectly Horizontal

Describes a line or curve on a graph that has a slope of zero, indicating no change.

Demand Curve

Illustrates the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.