Supposethatthetotalfixedcostforaguitarmanufactureris$90.Themarginalcostofthefirstguitarproducedis$80anddecreasesby$10forthenextthreeguitarsproduce .Thereafter,themarginalcostincreasesby$10foreachsuccessiveguitar.

Refer to the information above to answer this question. If the manufacturer can sell her guitars for $70, how many should she produce in order to maximize her profits?

Multiple Choice

• 5.
• 8.
• 7.
• 0.
• 6.

Supposethatthetotalfixedcostforaguitarmanufactureris$90.Themarginalcostofthefirstguitarproducedis$80anddecreasesby$10forthenextthreeguitarsproduce.Thereafter,themarginalcostincreasesby$10foreachsuccessiveguitar.

Refer to the information above to answer this question. If the manufacturer can sell her guitars for $70, what will be her profit or loss at the optimal output?

Multiple Choice

• A loss of $50.
• A loss of $90.
• A loss of $60.
• She will break even.
• A profit of $50.