The Table Given Below Shows the Total Revenue and Total

question 44

Multiple Choice

The table given below shows the total revenue and total cost of producing a commodity. Table 22.1
In Table 22.1, if the firm produces five units of output, it makes a profit of _____.

• A)$3, 000
• B)$0.
• C)$3, 000.
• D)$1, 200.
• E)$1, 000.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Saltwater Taffy

A variety of soft taffy originally produced and marketed in coastal areas, known for its unique texture and array of flavors.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Diminishing Returns

A principle stating that as more of a variable input is added to fixed inputs, the additional output gained from each new unit of input eventually decreases.