Asked by
Johnny Liang
on Nov 28, 2024Verified
Answer the question on the basis of the following data confronting a firm: Marginal Output Reven 0−−1$16216316416516MarginalCost−−$109131721\begin{array}{l}\begin{array}{ccr}&&\text { Marginal }\\\text { Output } & & \text { Reven } \\\hline0&&--\\1 & & \$ 16 \\2 & & 16 \\3 & & 16 \\4 & & 16 \\5 & & 16\end{array}\begin{array}{c}Marginal\\Cost\\\hline--\\\$ 10 \\9 \\13 \\17 \\21\end{array}\end{array} Output 012345 Marginal Reven −−$1616161616MarginalCost−−$109131721 Refer to the data.At the profit-maximizing output,the firm's total revenue is:
A) $48.
B) $32.
C) $80.
D) $64.
Profit-Maximizing Output
The level of production that maximizes a firm’s profits, determined by the intersection of marginal cost and marginal revenue.
Total Revenue
The total income earned by a firm from selling its products or services, calculated as the quantity sold multiplied by the selling price.
Marginal Revenue
The additional income earned by selling one more unit of a product or service.
- Ascertain economic gains, deficits, and the juncture at which revenue equals costs for companies within competitive sectors.
Verified Answer
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Learning Objectives
- Ascertain economic gains, deficits, and the juncture at which revenue equals costs for companies within competitive sectors.