Asked by Logan Jordan on May 09, 2024
Verified
Refer to Figure 15.1. If Dom's maximizes profits, it ________ of $80.
A) receives a total revenue
B) earns a profit
C) has a total cost
D) suffers a loss
Profit
The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
Total Revenue
The gross revenue of a company, being the entire sum of income from goods or services sold, prior to the deduction of any costs.
- Gain proficiency in evaluating profit, gross revenue, and complete expenditure for firms within markets that exhibit monopolistic competition.
Verified Answer
MS
Mangal SinghMay 16, 2024
Final Answer :
B
Explanation :
Dom's maximizes profits by producing at a level where marginal cost equals marginal revenue, which typically results in earning a profit.
Learning Objectives
- Gain proficiency in evaluating profit, gross revenue, and complete expenditure for firms within markets that exhibit monopolistic competition.