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Emily Lupercio
on Dec 08, 2024

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Marginal revenue equals marginal cost at an output of 20 units. At this output, marginal revenue equals $20, average variable cost equals $15, and average total cost equals $25. In the short run, a profit-maximizing firm will earn a profit of

A) -$200.
B) -$100.
C) $200.
D) $400.

Marginal Revenue

The additional income that a company generates from selling one more unit of a good or service.

Average Variable Cost

The per-unit variable cost of production, calculated by dividing total variable costs by the quantity of output produced.

  • Calculate marginal revenue and marginal cost and its implications for profit maximization.
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Vicky SpearsDec 14, 2024
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