Table 14-8 Suppose that a firm in a competitive market faces the following revenues and costs: Quantity 10 [1 12 13 114 15 16 17 Total Revenue $0 O b) $6 $12 $18 $24 $30 $36 $42 Total Cost $3 $5 $8 $12 $17 $23 $30 $38 Refer to Table 14-8. In order to maximize profits, the firm will produce a) 5 units of output because marginal revenue equals marginal cost. 4 units of output because marginal revenue exceeds marginal cost. c) 7 units of output because total revenue is maximized. ○ d) 1 unit of output because marginal cost is minimized.

Table 14-8 Suppose that a firm in a competitive market faces the following revenues and costs: Quantity 10 [1 12 13 114 15 16 17 Total Revenue $0 O b) $6 $12 $18 $24 $30 $36 $42 Total Cost $3 $5 $8 $12 $17 $23 $30 $38 Refer to Table 14-8. In order to maximize profits, the firm will produce a) 5 units of output because marginal revenue equals marginal cost. 4 units of output because marginal revenue exceeds marginal cost. c) 7 units of output because total revenue is maximized. ○ d) 1 unit of output because marginal cost is minimized.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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