The
following is the table of the market demand Q
of good at different prices P:

The firm’s unit cost of production
is constant and equal to £60. Based on this information, which of the following is correct?

Question

The
following is the table of the market demand Q
of good at different prices P:

The firm’s unit cost of production
is constant and equal to £60. Based on this information, which of the following is correct?

Answer

At  Q  = 100, the firm’s profit is £20,000.

Answer

The
maximum profit that can be attained is £50,000.

Answer

The
profit-maximising output is  Q  = 400.

Answer

The
firm will make a loss at an output of 800 or above.

Q	100	200	300	400	500	600	700	800	900	1,000
P	£270	£240	£210	£180	£150	£120	£90	£60	£30	£0

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