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

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

To calculate profit (or loss) in Exhibit 8-2, we need to subtract the total cost from the total revenue. Total revenue is $70 ($10 x 7), and total cost is $80 ($30 + $20 + $15 + $15). Therefore, the profit (or loss) is equal to total revenue minus total cost, which is -$10. This means that the firm is suffering a $10 loss. So, option D is the correct answer.

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