This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the following statements is correct, based on the information shown? Marginal cost and marginal revenue ($) 9,000 - 8,000 7,000- 6,000 5,000 4,000 3,000 2,000- 1,000 0 -1,000 0 B m 10 20 30 40 C Revenue is greater when Q = 10 than if Q = 20. O Profit is greater when Q- 20 than when Q-10. Marginal cost Marginal revenue D 50 60 70 80 When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative. O The firm would not choose to produce at point E because marginal profit is zero. Quantity of cars, Q
This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the following statements is correct, based on the information shown? Marginal cost and marginal revenue ($) 9,000 - 8,000 7,000- 6,000 5,000 4,000 3,000 2,000- 1,000 0 -1,000 0 B m 10 20 30 40 C Revenue is greater when Q = 10 than if Q = 20. O Profit is greater when Q- 20 than when Q-10. Marginal cost Marginal revenue D 50 60 70 80 When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative. O The firm would not choose to produce at point E because marginal profit is zero. Quantity of cars, Q
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 1PA
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Question
![This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the
following statements is correct, based on the information shown?
Marginal cost and
marginal revenue ($)
9,000 -
8,000
7,000-
6,000
5,000
4,000
3,000
2,000-
1,000
0
-1,000
0
B
m
10 20 30 40
C
Revenue is greater when Q = 10 than if Q = 20.
O Profit is greater when Q- 20 than when Q-10.
Marginal cost
Marginal revenue
D
50 60
70
80
When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative.
O The firm would not choose to produce at point E because marginal profit is zero.
Quantity
of cars, Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb0ca43d-21c7-4ce6-ad34-560b1c1a4404%2Feb503154-f0ef-4857-a8a3-b8ed30a78a91%2Fu9iioxs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the
following statements is correct, based on the information shown?
Marginal cost and
marginal revenue ($)
9,000 -
8,000
7,000-
6,000
5,000
4,000
3,000
2,000-
1,000
0
-1,000
0
B
m
10 20 30 40
C
Revenue is greater when Q = 10 than if Q = 20.
O Profit is greater when Q- 20 than when Q-10.
Marginal cost
Marginal revenue
D
50 60
70
80
When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative.
O The firm would not choose to produce at point E because marginal profit is zero.
Quantity
of cars, Q
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