Question 55
HardOriginal questionA firm sells at ₹20 and its total cost for 0 to 6 units is ₹20, 35, 45, 57, 77, 103, 135. Match each output with its profit.
| List I | List II |
|---|---|
| A. 2 units | I. ₹3 |
| B. 4 units | II. ₹−15 |
| C. 5 units | III. ₹−5 |
| D. 6 units | IV. ₹−3 |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Profit = 20q − TC: 2 units 40 − 45 = −5; 4 units 80 − 77 = 3.
5 units 100 − 103 = −3; 6 units 120 − 135 = −15.
- Concept
- Profit at each output
- Typical timeTypical
- 120 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Revenue & Producer's Equilibrium, at your own pace.