Table 10-4
$\begin{array}{|c|c|c|}
\hline \begin{array}{c}
\text { Price per } \
\text { Dose }
\end{array} & \begin{array}{c}
\text { Quantity Demanded } \
\text { (dose) }
\end{array} & \begin{array}{c}
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 80 & 0 & \$ 80 \
\hline 72 & 1 & 82 \
\hline 64 & 2 & 88 \
\hline 56 & 3 & 100 \
\hline 48 & 4 & 124 \
\hline 40 & 5 & 164 \
\hline 32 & 6 & 208 \
\hline 24 & 7 & 268 \
\hline 16 & 8 & 340 \
\hline
\end{array}$ Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 10-4 shows the demand and the total cost schedule for the firm.
-Refer to Table 10-4.What is the amount of Shakti's profit?
A) $68
B) $72
C) $124
D) $192

Question

Table 10-4
 $\begin{array}{|c|c|c|}
\hline \begin{array}{c}
\text { Price per } \
\text { Dose }
\end{array} & \begin{array}{c}
\text { Quantity Demanded } \
\text { (dose) }
\end{array} & \begin{array}{c}
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 80 & 0 & \$ 80 \
\hline 72 & 1 & 82 \
\hline 64 & 2 & 88 \
\hline 56 & 3 & 100 \
\hline 48 & 4 & 124 \
\hline 40 & 5 & 164 \
\hline 32 & 6 & 208 \
\hline 24 & 7 & 268 \
\hline 16 & 8 & 340 \
\hline
\end{array}$ Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 10-4 shows the demand and the total cost schedule for the firm.
-Refer to Table 10-4.What is the amount of Shakti's profit?
A) $68
B) $72
C) $124
D) $192

Quizplus · Accepted Answer

The correct answer is A because the profit is the difference between the total revenue and the total cost of production. The total revenue is the price per dose multiplied by the quantity demanded. The total cost of production is given in the table. The profit is the difference between the total revenue and the total cost of production. For example, at a price of $80 per dose, the total revenue is $0, and the total cost of production is $80. The profit is -$80. At a price of $72 per dose, the total revenue is $72, and the total cost of production is $82. The profit is -$10. At a price of $64 per dose, the total revenue is $128, and the total cost of production is $88. The profit is $40. At a price of $56 per dose, the total revenue is $168, and the total cost of production is $100. The profit is $68. At a price of $48 per dose, the total revenue is $192, and the total cost of production is $124. The profit is $68. At a price of $40 per dose, the total revenue is $200, and the total cost of production is $164. The profit is $36. At a price of $32 per dose, the total revenue is $192, and the total cost of production is $208. The profit is -$16. At a price of $24 per dose, the total revenue is $168, and the total cost of production is $268. The profit is -$100. At a price of $16 per dose, the total revenue is $128, and the total cost of production is $340. The profit is -$212.

Table 10-4 Shakti Inc