Question

86) Refer to Figure 13.6. The Memory Company's….. is $800.

A) total cost
C) minimum level of loss
B) maximum level of profit
D) total revenue

Answer 1

Without specific data from Figure 13.6, it's impossible to conclusively determine if the $800 figure represents total cost, total revenue, maximum profit, or minimum level of loss. It would depend on the context provided by the figure. Option number a is correct.

Step-by-step explanation:

The student asked about The Memory Company's $800 figure referenced in Figure 13.6. Based on the information provided in similar figures, such as Figures 8.2 and 8.5 (c), and the context of the business examples, it's essential to compare total revenue and total cost to determine profits or losses. In these examples, the profit or loss is calculated by subtracting the total cost from the total revenue.

The provided examples explain how to calculate total revenue, total cost, and profits or losses. Specifically, in one scenario, the firm's total revenue and total costs are represented by shaded rectangles, with profits being the area where the total revenue rectangle exceeds the total cost rectangle.

Without specific data from Figure 13.6, it's impossible to definitively answer whether the $800 figure represents total cost, maximum level of profit, total revenue, or minimum level of loss. However, if the question pertains to a situation where the firm's total revenues are less than total costs, as in the examples provided, then the $800 could likely represent a loss.