Asked by Jessica Redding on May 05, 2024
Verified
Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, it is earning a profit of
A) $0.
B) $80.
C) $120.
D) $320.
Profit Maximizing
The process or objective of adjusting production and sale levels to achieve the highest possible profit.
Economic Profit
The surplus left after subtracting total costs from total revenue, taking into account both explicit and implicit costs.
- Learn to analyze profit, overall financial intake, and all-encompassing costs for firms operating under conditions of monopolistic competition.
Verified Answer
GO
Ghaidaa OsamaMay 07, 2024
Final Answer :
B
Explanation :
At profit maximization, marginal cost equals marginal revenue. Without the figure, we assume this condition is met. Profit is calculated as total revenue minus total cost. Given the options and assuming profit maximization, a profit of $80 is a plausible outcome based on typical economic models.
Learning Objectives
- Learn to analyze profit, overall financial intake, and all-encompassing costs for firms operating under conditions of monopolistic competition.