Question
Assume that the market price = $24 and that the marginal revenue (MR) is also = $24 at all output levels. The firm plans to
Assume that the market price = $24 and that the marginal revenue (MR) is also = $24 at all output levels.
The firm plans to produce 3 units of outputs
Given the cost information in the previous question
TC = 5 Q2 + 4 Q - 2
MC = 10 Q + 4.
Market price is = 24
Marginal revenue (MR) = 24 at all output levels.
What is the firm's total profit at the profit-maximizing output (the output level you derived in the previous question)?
| a. | $22 | |
| b. | $17 | |
| c. | $25 | |
| d. | $48 |
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
