Question
Assume that the Market price = $500 Marginal revenue (MR) is also $500 at all output levels. The firm plans to produce 40 units of
Assume that the Market price = $500
Marginal revenue (MR) is also $500 at all output levels.
The firm plans to produce 40 units of output
Given the cost and price information in the previous question
TC = 4,500 + 5Q2
MC = 10Q
MR = $500
What is the profit maximizing output level
| a. | 50 | |
| b. | 35 | |
| c. | 70 | |
| d. | It can't be determined. |
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Mike Deschamps
14th Edition
0134729315, 978-0134729312
