Question
Given the cost information in the previous question TC = 40 + 0.1 Q 2 - 0.2Q MC = .2Q - .2 Market price =
Given the cost information in the previous question
TC = 40 + 0.1 Q2 - 0.2Q
MC = .2Q - .2
Market price = $4.20
Marginal revenue (MR)= $4.20 at all output levels.
What is the profit at the profit-maximizing output level (the output level derived in the previous question)?
Assume that the market price = $4.20
Marginal revenue = $4.20
The firm plans to produce 20 units of output
| a. | $45.00 | |
| b. | $10.50 | |
| c. | $6.30 | |
| d. | $8.40 |
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
