Question
A firm's total cost and marginal cost functions are TC = 5 Q2 + 4 Q - 2 and MC = 10 Q + 4.
A firm's total cost and marginal cost functions are TC = 5 Q2 + 4 Q - 2 and MC = 10 Q + 4. Assume that the market price is 24 and that the marginal revenue (MR) is also 24 at all output levels. If the firm is currently producing 3 units of output, are profits maximized? profits? Why or why not?
Yes; because at Q=3, MR is different from MC
Yes; because at Q=3, MR is equal to MC
No; because at Q=3, MR is different from MC
No; because at Q=3, MR is equal to MC
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Global Capitalism Its Fall And Rise In The Twentieth Century
Authors: Jeffry Frieden
1st Edition
039332981X, 9780393329810
