Refer to the table below. At what output level or levels are this firm's owners doing as well as or better than they could do with the next best use of their resources? $$\begin{array} { | c | c | c | c | }
\hline \text { Quantity } & \text { Total Revenue } & \text { Explicit Costs } & \text { Implicit Costs } \
\hline 10 & 50 & 36 & 5 \
\hline 15 & 75 & 63 & 6 \
\hline 20 & 100 & 93 & 7 \
\hline 25 & 125 & 125 & 8 \
\hline 30 & 150 & 161 & 9 \
\hline
\end{array}$$
A)10 units
B)10 and 15 units
C)10, 15, and 20 units
D)10, 15, 20, and 25 units

Question

Refer to the table below. At what output level or levels are this firm's owners doing as well as or better than they could do with the next best use of their resources? $$\begin{array} { | c | c | c | c | } 
\hline \text { Quantity } & \text { Total Revenue } & \text { Explicit Costs } & \text { Implicit Costs } \
\hline 10 & 50 & 36 & 5 \
\hline 15 & 75 & 63 & 6 \
\hline 20 & 100 & 93 & 7 \
\hline 25 & 125 & 125 & 8 \
\hline 30 & 150 & 161 & 9 \
\hline
\end{array}$$
A)10 units
B)10 and 15 units
C)10, 15, and 20 units
D)10, 15, 20, and 25 units

Quizplus · Accepted Answer

The economic profit for any output level can be calculated by subtracting the explicit costs and implicit costs from the total revenue. 
For 10 units, the economic profit is $50 - $36 - $5 = $9.
For 15 units, the economic profit is $75 - $63 - $6 = $6.
For 20 units, the economic profit is $100 - $93 - $7 = $0.
For 25 units, the economic profit is $125 - $125 - $8 = -$8.
For 30 units, the economic profit is $150 - $161 - $9 = -$20. 
Therefore, the firm's owners are doing as well as or better than they could do with the next best use of their resources at 10, 15, and 20 units. So, the best choice is C.

Refer to the Table Below A)10 Units B)10 and 15 Units C)10, 15, and 20

Refer to the Table Below A)10 Units
B)10 and 15 Units
C)10, 15, and 20