Table 14-14
The following table presents cost and revenue information for Bob's bakery production and sales.
-Refer to Table 14-14. Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75. At this new price, if Bob produces and sells the profit-maximizing quantity, how much profit will he earn?
A)$0.25
B)$1.25
C)$2.25
D)The firm will lose $6.25.

Question

Table 14-14
The following table presents cost and revenue information for Bob's bakery production and sales. 
-Refer to Table 14-14. Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75. At this new price, if Bob produces and sells the profit-maximizing quantity, how much profit will he earn?
A)$0.25 
B)$1.25 
C)$2.25 
D)The firm will lose $6.25.

Quizplus · Accepted Answer

The Answer of Table 14-14
The following table presents cost and revenue information for Bob's bakery production and sales. 
-Refer to Table 14-14. Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75. At this new price, if Bob produces and sells the profit-maximizing quantity, how much profit will he earn?
A)$0.25 
B)$1.25 
C)$2.25 
D)The firm will lose $6.25.

Table 14-14 The Following Table Presents Cost and Revenue Information for Bob's