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:

Total Cost

The complete cost of production or service delivery, including direct, indirect, fixed, and variable costs.

Overbooking

The practice of selling more of a service than what is actually available, based on the expectation that there will be cancellations.

Asset Drops

Instances where valuable resources or investments suddenly decrease in value or become less useful.

Deadline

The latest time or date by which a task, project, or deliverable must be completed.