Table 13.2
$\begin{array}{|c|c|c|}
\hline \text { Price per Dose } & \begin{array}{c}
\text { Quantity } \
\text { Demanded } \
\text { (dose) }
\end{array} & \begin{array}{c}
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 80 & 0 & \$ 80 \
\hline 72 & 1 & 82 \
\hline 64 & 2 & 88 \
\hline 56 & 3 & 100 \
\hline 48 & 4 & 124 \
\hline 40 & 5 & 164 \
\hline 32 & 6 & 208 \
\hline 24 & 7 & 268 \
\hline 16 & 8 & 340 \
\hline
\end{array}$
Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm.
-Refer to Table 13.2.What is the amount of Onawy's profit?
A)$68
B)$72
C)$124
D)$192

Question

Table 13.2
 $\begin{array}{|c|c|c|}
\hline \text { Price per Dose } & \begin{array}{c}
\text { Quantity } \
\text { Demanded } \
\text { (dose) }
\end{array} & \begin{array}{c}
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 80 & 0 & \$ 80 \
\hline 72 & 1 & 82 \
\hline 64 & 2 & 88 \
\hline 56 & 3 & 100 \
\hline 48 & 4 & 124 \
\hline 40 & 5 & 164 \
\hline 32 & 6 & 208 \
\hline 24 & 7 & 268 \
\hline 16 & 8 & 340 \
\hline
\end{array}$ 
Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm.
-Refer to Table 13.2.What is the amount of Onawy's profit?
A)$68
B)$72
C)$124
D)$192

Quizplus · Accepted Answer

The correct answer is A. The amount of Onawy's profit is $68. This is calculated by subtracting the total cost of production from the total revenue. The total revenue is equal to the price per dose multiplied by the quantity demanded. The total cost of production is given in the table.

Table 132 Onawy Inc Has Been Granted a Patent for Its Birch Root