The Table Given Below Shows the Prices Charged and Marginal

question 96

Multiple Choice

The table given below shows the prices charged and marginal cost incurred by a monopolist for different units of the output. Table 10.3
Assume that the firm described in Table 10.2 is incurring a total cost of $7, 000 at the profit-maximizing output level.The firm will

• A)lose $10, 000 in the short run.
• B)break even.
• C)earn a profit of $3, 800.
• D)earn a profit of $3, 500.
• E)earn a profit of $5, 500.

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Definitions:

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.

Marginal Productivity

The additional output that results from using one more unit of a factor of production, holding other factors constant.

Official Government Definition

A formal and authoritative explanation or description of a term or policy provided by a governmental body.

Biological Needs

Fundamental requirements that sustain the life of an organism, such as food, water, and shelter.