The following table shows the costs for a manufacturer:

-Refer to the above information to answer this question.If the price of the product is $40,how much will the manufacturer produce and what will be its total profit or loss?

Question

The following table shows the costs for a manufacturer:
 
-Refer to the above information to answer this question.If the price of the product is $40,how much will the manufacturer produce and what will be its total profit or loss?

Quizplus · Accepted Answer

To determine how much the manufacturer will produce, we need to find the point where the total cost intersects with the price ($40) line. Looking at the table, we see that at a production level of 5, the total cost is $25. Therefore, the manufacturer will produce 5 units.

To calculate the profit or loss, we need to subtract the total cost from the total revenue. At a production level of 5, the total revenue will be 5 x $40 = $200. The total cost is $25. Therefore, the profit will be:

$200 - $25 = $175

This means the manufacturer will have a profit of $15. Therefore, the best choice is C.

The Following Table Shows the Costs for a Manufacturer