Question 49
HardOriginal questionA firm sells at a market price of ₹20 a unit. Its total cost schedule is:
| Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Total cost (₹) | 20 | 35 | 45 | 57 | 77 | 103 | 135 |
What is the firm's profit at its equilibrium output?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
At 4 units, TR = 20 × 4 = ₹80 and TC = ₹77.
Profit = 80 − 77 = ₹3. No other output gives more (₹3 at 3 units too, less elsewhere).
- Concept
- Profit at equilibrium
- Typical timeTypical
- 100 s
- Your timeYours
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