-Refer to Table 8-1. If the market price of each camera case is $8 and the firm maximises profit, what is the amount of the firm's profit or loss?

Question

Quizplus · Accepted Answer

To maximise profit, the firm must produce the quantity where MR=MC. In this case, that quantity is 110. At a price of $8 per unit, this means total revenue will be 110 x $8 = $880. Total cost at 110 units is $440, therefore profit will be $880 - $440 = $440. Therefore, the correct answer is C.