A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 93rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos.
The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of
gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo
producer produce 193 cans of gizmos instead?
No, the marginal cost of the 192nd box is above marginal revenue, so production is
already too high.
No, while the marginal cost of the 192nd box is below marginal revenue, the marginal
cost of 3rd box is above it, so profit is already maximized.
None of these answers.
Yes, the marginal cost of the 192nd box is below marginal revenue, so production is
too low, and profits are not maximized.
20
MacBook
esc
20
F3
OOD
F1
F2
F4
2$
W
R
tab
6
5
%A4
%# 3
Transcribed Image Text:A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 3rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized. 20 MacBook esc 20 F3 OOD F1 F2 F4 2$ W R tab 6 5 %A4 %# 3
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