A Lagrangian equation for total profit was solved, giving a Lagrangian multiplier of 94 and an output of 28. Which of the following statements is/are true? (i) If output increases by 100%, total profit will be increased by 94%. (ii) The marginal profit is exactly 94 when Q = 28. (iii) Profit will be maximised when output is at 94. (iv) If an additional item costs less than 94, it should be produced. a.(i) and (iv) only b.None of these other available answer choices is correct c.(i) only d.(ii) and (iii) only e.(iii) only
A Lagrangian equation for total profit was solved, giving a Lagrangian multiplier of 94 and an output of 28. Which of the following statements is/are true? (i) If output increases by 100%, total profit will be increased by 94%. (ii) The marginal profit is exactly 94 when Q = 28. (iii) Profit will be maximised when output is at 94. (iv) If an additional item costs less than 94, it should be produced. a.(i) and (iv) only b.None of these other available answer choices is correct c.(i) only d.(ii) and (iii) only e.(iii) only
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A Lagrangian equation for total profit was solved, giving a Lagrangian multiplier of 94 and an output of 28. |
Which of the following statements is/are true? |
(i) If output increases by 100%, total profit will be increased by 94%. |
(ii) The marginal profit is exactly 94 when Q = 28. |
(iii) Profit will be maximised when output is at 94. |
(iv) If an additional item costs less than 94, it should be produced. |
a.(i) and (iv) only
b.None of these other available answer choices is correct
c.(i) only
d.(ii) and (iii) only
e.(iii) only
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education