Asked by Leonardo Garcia on Jul 07, 2024
Verified
Answer the question on the basis of the following cost data: Total Output Cost 0$24133241348454561669\begin{array} { c c c } &&\text { Total } \\\text { Output }&&\text { Cost }\\\hline0 & & \$ 24 \\1 & & 33 \\2 & & 41 \\3 & & 48 \\4 & & 54 \\5 & & 61 \\6 & & 69\end{array} Output 0123456 Total Cost $24334148546169 Refer to the data.The profit-maximizing output for this firm:
A) is 3.
B) is 4.
C) is 5.
D) cannot be determined from the information given.
Profit-Maximizing
The process or strategy of adjusting production levels, prices, or other variables to generate the highest possible profit.
Total Cost
The sum of all expenditures incurred by a business to produce and sell a product, including fixed and variable costs.
- Determine profit-maximizing output levels using cost data.
Verified Answer
RT
rodley thelorsJul 08, 2024
Final Answer :
D
Explanation :
To determine the profit-maximizing output, we need information about the firm's revenue at different levels of output. The given data only provides costs, not prices or revenues, so we cannot determine the profit-maximizing output without additional information.
Learning Objectives
- Determine profit-maximizing output levels using cost data.
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