If the marginal product of labor is increasing, the marginal cost of output must be
1 answer:
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Answer:
$6600
Explanation:
Given: Selling price= $250 per unit
Variable cost= $181 per unit.
Fixed cost= $430000.
Expected Profit= $25400.
Let´s assume the number of units sold be "x".
Revenue (R) =
Cost of product (C)=
∴ Cost of product (C)=
Now, finding the number of unit sold.
Forming an equation for profit.
We know, Profit=
⇒
Opening parenthesis.
⇒
⇒
Adding both side by 430000
⇒
Dividing both side by 69
⇒
∴
Hence, total number of units sold to earn $25400 is 6600 units.