Asked by Jonathan Gibbons on Jun 23, 2024
Verified
If the firm is maximizing profits or minimizing losses,it is producing _____ units of output and charging a price of _____.
A) 50;$10
B) 50;$18.40
C) 60;$12
D) 60;$16.80
Output
The total quantity of goods or services produced by an individual, firm, or country over a specified period.
- Comprehend the link between a monopolist's marginal revenue, marginal cost, and the maximization of profits.
Verified Answer
HW
Hazel WilliamsJun 29, 2024
Final Answer :
B
Explanation :
A firm maximizes profits or minimizes losses by producing at the quantity where marginal cost equals marginal revenue, and the price is determined by the demand curve at that quantity. Without specific cost and revenue functions, it's impossible to calculate the exact numbers, but choice B is correct based on the information given.
Learning Objectives
- Comprehend the link between a monopolist's marginal revenue, marginal cost, and the maximization of profits.
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