The table given below shows the price charged by a firm and the marginal cost incurred by it for the different levels of the output. Table 10.2

-Assume that the firm described in Table 10.2 is incurring a total cost of $25 at the profit-maximizing output level.The firm will:
A)lose $10 in the short run.
B)break even.
C)earn a profit of $50.
D)earn a profit of $30.
E)earn a profit of $55.

Question

The table given below shows the price charged by a firm and the marginal cost incurred by it for the different levels of the output. Table 10.2
 
-Assume that the firm described in Table 10.2 is incurring a total cost of $25 at the profit-maximizing output level.The firm will:
A)lose $10 in the short run. 
B)break even. 
C)earn a profit of $50. 
D)earn a profit of $30. 
E)earn a profit of $55.

Quizplus · Accepted Answer

The firm is earning a profit of $30 because total revenue is $55 and total cost is $25.

The Table Given Below Shows the Price Charged by a Firm