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Samborg's cost of production is given by C (x)=5x. The firm has also determined that its revenue function is given by R(x) = 9x 0.001.
Samborg's cost of production is given by C (x)=5x. The firm has also determined that its revenue function is given by R(x) = 9x 0.001. A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Given the nonlinear nature of Samborg's revenue function, its marginal revenue, MR, is not constant. For instance, its MR when 1,000 units are sold is $ [Select] 2,000 units, its MR is $ [Select] [Select] . However, at . Clearly, MR is with higher levels of output. On the cost side, the firm's total cost when output is zero is $ [Select] means the company's fixed cost is $ [Select] This The firm's average cost is $ [Select] and marginal cost is $ [Select] Y. So, MC is constant at all levels of output. Samborg is run by a rational CEO. She believes that the company, at a minimum, must breakeven. From the given revenue and cost functions, the company's breakeven output is [Select] units. She is aware that her company needs to do better than breakeven. Based on the cost and revenue functions Samborg's CEO has determined that her company maximizes profits it produces [Select] Y units. At the breakeven level, Samborg's total profit is just $ [Select]
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