Exhibit 8-2

-How much profit is the firm in Exhibit 8-2 earning (or how much of a loss is it suffering)?

Name: Exhibit 8-2 -How much profit is the firm in Exhibit 8-2 earning (or how much of a loss is it suffering)?
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Question

Exhibit 8-2
 
-How much profit is the firm in Exhibit 8-2 earning (or how much of a loss is it suffering)?

Quizplus · Accepted Answer

The firm's total revenue is $90 ($50 + $20 + $20), while its total cost is $100 ($70 + $20 + $10). Therefore, the firm is suffering a loss of $10. This is only indicated by choice D.

Exhibit 8-2 -How Much Profit Is the Firm in Exhibit 8-2 Earning