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
P = $500
MR = $500
What is the profit at the profit-maximizing output level (derived in the previous question)
| a. | $10,000 | |
| b. | $8,000 | |
| c. | $20,000 | |
| d. | $25,000 |
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Intermediate Accounting Volume 1
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
7th Edition
1260306747, 978-1260306743
