5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level?a.150 unitsb.80 unitsc.50 unitsd.less than 50 unitse.between 50 and 80 unitsChoose and explain your answer above thoroughly--graphical, algebraically, numerically. es/31724/assignments/345172?module_item_id%3D1142393GGGGCoomFigure 7 -1390%Dollarsraryper Unitr OnlineMC165acementsnline TutoringMR5080150Units ofOutput5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able tocover its variable costs if it operates in the short run. What is the firm's optimal output level?a. 150 unitsb. 80 unitsC. 50 unitsd. less than 50 unitse. between 50 and 80 unitsChoose and explain your answer above thoroughly--graphical, algebraically, numerically.

Answered: Consider the marginal revenue and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level?

a.	150 units
b.	80 units
c.	50 units
d.	less than 50 units
e.	between 50 and 80 units

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

es/31724/assignments/345172?module_item_id%3D1142393
GGGG
Coom
Figure 7 -13
90%
Dollars
rary
per Unit
r Online
MC
165
acements
nline Tutoring
MR
50
80
150
Units of
Output
5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to
cover its variable costs if it operates in the short run. What is the firm's optimal output level?
a. 150 units
b. 80 units
C. 50 units
d. less than 50 units
e. between 50 and 80 units
Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

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