What is the maximum amount of profit that the firm below could generate?
A) -$2,800
B) $2,400
C) $2,480
D) $2,880

Question

What is the maximum amount of profit that the firm below could generate? 
A) -$2,800 
B) $2,400 
C) $2,480 
D) $2,880

Quizplus · Accepted Answer

To calculate the maximum profit, we need to find the difference between the revenue and the total cost at each level of production. The maximum profit is achieved when the difference between revenue and total cost is the greatest. In this case, that occurs at a production level of 8 units where the difference is $2,480. Therefore, the answer is C) $2,480.

What Is the Maximum Amount of Profit That the Firm