Exhibit 22-8

-Refer to Exhibit 22-8. What is the total cost of firm B at the profit-maximizing (or loss-minimizing) level of production?

Question

Exhibit 22-8
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-Refer to Exhibit 22-8. What is the total cost of firm B at the profit-maximizing (or loss-minimizing) level of production?

Quizplus · Accepted Answer

The total cost of a firm at the profit-maximizing (or loss-minimizing) level of production is found by multiplying the quantity produced at this level by the average total cost at this quantity. Without the specific details from Exhibit 22-8, such as the quantity produced and the average total cost, it's not possible to directly calculate or confirm the total cost. However, given that C is the correct answer, it suggests that based on the data provided in Exhibit 22-8, the total cost at the profit-maximizing level of production for firm B is $1,650. This would typically involve analyzing a graph or table that shows the firm's cost structures and output levels.

Exhibit 22-8 ​

Exhibit 22-8