The table given below shows the total revenue and total cost of producing a comm
ID: 1223096 • Letter: T
Question
The table given below shows the total revenue and total cost of producing a commodity.
Table 9.1
Total Output
Total Revenue
Total Cost
0
$0
$1,000
1
$1,700
$2,000
2
$3,300
$2,800
3
$4,800
$3,500
4
$6,200
$4,000
5
$7,500
$4,500
6
$8,700
$5,200
7
$9,800
$6,000
8
$10,800
$7,000
9
$11,700
$9,000
In Table 9.1, if the firm produces five units of output, it makes a profit of _____.
$800
$1,000
$0
$1,200
$3,000
The table given below shows the total revenue and total cost of producing a commodity.
Table 9.1
Total Output
Total Revenue
Total Cost
0
$0
$1,000
1
$1,700
$2,000
2
$3,300
$2,800
3
$4,800
$3,500
4
$6,200
$4,000
5
$7,500
$4,500
6
$8,700
$5,200
7
$9,800
$6,000
8
$10,800
$7,000
9
$11,700
$9,000
Explanation / Answer
Option (e).
When Output = 5, Profit = Total revenue - Total cost = $(7,500 - 4,500) = $3,000
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