The Following Table Shows the Total Revenue (In Dollars) and Total

question 25

Multiple Choice

The following table shows the total revenue (in dollars) and total cost (in dollars) from the production and sale of different units of a product.
Table 2-1
$\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity } & \text { Total Revenue } & \text { Total Cost } \\\hline 15 & 1 & 15 & 3 \\\hline 14 & 2 & 28 & 7 \\\hline 13 & 3 & 39 & 12 \\\hline 12 & 4 & 48 & 18 \\\hline 11 & 5 & 55 & 25 \\\hline 10 & 6 & 60 & 33 \\\hline\end{array}$
-Refer to Table 2-1. What is the profit-maximizing level of output for the firm?

• A) 3 units
• B) 2 units
• C) 1 unit
• D) 5 units
• E) 6 units

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Definitions:

Weber's Law

A principle in psychology that states the smallest change in a stimulus that can be detected is a constant proportion of the original stimulus.

Opponent-Process Theory

The theory that opposing retinal processes (red-green, yellow-blue, white-black) enable color vision. For example, some cells are stimulated by green and inhibited by red; others are stimulated by red and inhibited by green.

Feature Detection

The process by which the brain identifies specific components of visuals, such as lines, edges, or movements, to interpret what is seen.

Prosopagnosia

A neurological disorder characterized by the inability to recognize faces.