Table 7-1 shows revenue and cost data for a perfectly competitive firm. What is the value of the variable Z shown in the table?Table 7-1

Question

Quizplus · Accepted Answer

To find the value of Z, we need to use the formula Z = TR - TC. From the table, we can see that TR = $60 and TC = $95, so Z = $60 - $95 = -$35. Therefore, the correct answer is (C). Option A is incorrect because Z is negative, indicating a loss for the firm. Option B is incorrect because it is not the correct value of Z. Option D and E are also incorrect as they do not match the calculated value of Z.

Table 7-1 Shows Revenue and Cost Data for a Perfectly