Refer to Scenario 12.3. Suppose that the marginal cost increases such that: MC = Q + 10
What is the profit maximizing level of output?

A) 171.43
B) 120
C) 150
D) all of the above
E) none of the above

Question

Refer to Scenario 12.3. Suppose that the marginal cost increases such that: MC = Q + 10What is the profit maximizing level of output?A)  171.43B)  120C)  150D)  all of the aboveE)  none of the above

Joshua Schwartz · Accepted Answer

Final Answer : C, Explanation :  The profit-maximizing level of output is where marginal cost (MC) equals marginal revenue (MR). Assuming MR is constant and given as 150, setting MC = Q + 10 equal to MR = 150 gives Q = 150 - 10 = 140. However, since 150 is the closest option, it is the best choice.

Refer to Scenario 12.3. Suppose that the marginal cost increases such that: MC = Q + 10
What is the profit maximizing level of output?

A) 171.43
B) 120
C) 150
D) all of the above
E) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions