Suppose your firm has a marginal revenue given by the equation mr = 10 - q, where q is the quantity produced and sold. this means that the seventh unit of output brings in 10 - 7 = $ 3 of additional revenue. the marginal cost for your firm is given by the equation mc = 2 + q. this means that the seventh unit of output increases the marginal cost by 2 + 7 = $ 9.
if the firm produces the seventh unit of output, marginal cost will be marginal revenue. in which of the following cases, will the profit of the firm be maximized?
(a) when the marginal cost of producing an additional unit equals the marginal revenue from that unit.
(b) when the average cost of producing an additional unit equals the marginal revenue from that unit.
(c) when the marginal cost of producing an additional unit is less than the marginal revenue from that unit.
(d) when the average cost of producing an additional unit is less than the marginal revenue from that unit. the profit-maximizing level of output is units.
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 19:40, nessabear9472
Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no
Answers: 2
Business, 22.06.2019 02:30, tdyson3p6xvtu
The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.
Answers: 1
Business, 22.06.2019 12:00, bbyniah123
Select the correct answer. martha is a healer, a healthcare provider, and an experienced nurse. she wants to share her daily experiences, as well as her 12 years of work knowledge, with people who may be interested in health and healing. which mode of internet communication can martha use? a. wiki b. email c. message board d. chat e. blog
Answers: 2
Business, 22.06.2019 14:40, ZoomZoom44
You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?
Answers: 2
You know the right answer?
Suppose your firm has a marginal revenue given by the equation mr = 10 - q, where q is the quantity...
Questions in other subjects:
Spanish, 28.08.2020 20:01
Mathematics, 28.08.2020 20:01
Mathematics, 28.08.2020 20:01
