Asked by Lorena Dalipaj on May 12, 2024
Verified
Refer to Figure 15.1. The ________ number of haircuts for Dom's Barber Shop is 20.
A) profit-maximizing number
B) loss-minimizing number
C) shutdown quantity
D) break-even
Profit-Maximizing Number
The output level at which a firm achieves the highest possible profit, determined by revenue and cost structures.
Shutdown Quantity
The amount of output at which a company's revenue just covers its variable costs, prompting it to cease operations temporarily if prices fall below this level.
- Recognize and examine the actions firms take to maximize profits in monopolistically competitive markets over short and long-term periods.
Verified Answer
VD
Valerjr DotvenMay 15, 2024
Final Answer :
A
Explanation :
The profit-maximizing number of haircuts is the quantity at which a firm's marginal costs equal its marginal revenue, leading to the highest possible profit. Without seeing Figure 15.1, this principle generally applies.
Learning Objectives
- Recognize and examine the actions firms take to maximize profits in monopolistically competitive markets over short and long-term periods.
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