1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aloiza [94]
3 years ago
6

Suppose your firm has a marginal revenue given by the equation MR = 10 - Q where Q is the quantity produced and sold. This means

that the seventh unit of output brings in 10 - 7 = $3 of additional revenue. The marginal cost for your firm is given by the equation MC = 2 + Q. This means that the seventh unit of output increases the marginal cost by 2 + 7 = $9. If the firm produces the seventh unit of output, marginal cost will be marginal revenue. In which of the following cases, will the profit of the firm be maximized? A. When the marginal cost of producing an additional unit equals the marginal revenue from that unit. B. When the average cost of producing an additional unit equals the marginal revenue from that unit. C. When the marginal cost of producing an additional unit is less than the marginal revenue from that unit. D. When the average cost of producing an additional unit is less than the marginal revenue from that unit. The profit-maximizing level of output is units.
Business
1 answer:
KonstantinChe [14]3 years ago
4 0

Answer:

The answer is: A) When the marginal cost of producing an additional unit equals the marginal revenue from that unit.

Explanation:

In economics, we assume that a company´s main goal is to maximize its profit. In order for any company do to this, the marginal cost (MC) of producing an extra unit of production must equal the marginal revenue (MR) obtained by selling that extra unit of production.

Theoretically, in perfect market conditions, MR=MC in the equilibrium point between quantity supplied and quantity demanded. But on real world conditions elasticity of both demand and supply alter the curves.  

You might be interested in
Max and Eli both graduated from the police academy. Max chose to work in a large city with high crime rates, while Eli chose a j
Rina8888 [55]

Answer: Compensating differentials.

Explanation:

Compensating differential is the additional amount of money that a worker is given in order to motivate the worker to accept an undesirable job. Compensating differentials is as a result of the risk of injury, risk of future unemployment, risk of unsafe environment and it explains why there is difference in pay between different regions

Even though Max and Eli have the same skill and are members of the same trade union, Max is paid higher than Eli because Max works in an area with high crime rate while Eli's area has a low crime rate. Thus, Max higher is expected because the cost of living is higher in a city and also due to higher crime rates which means he's likely to work mire than Eli.  

5 0
3 years ago
Read 2 more answers
Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
gtnhenbr [62]

Answer:

YTM = 0.6940%

Explanation:

THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

The formula would go as:

YTM = \frac{F}{P}^{\frac{1}{n}} -1

Where

F is the face value, or par value

P is the current price

n is the time period, maturity period

Given,

F = 1000

P = 920

n = 12, we have:

YTM = \frac{F}{P}^{\frac{1}{n}} -1 = \frac{1000}{920}^{\frac{1}{12}} -1=0.006972

Thus, the yield to maturity would be:

YTM = 0.6940%

5 0
3 years ago
The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company
stealth61 [152]

Answer:

209,000 shares

Explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.

5 0
3 years ago
When completing a worksheet, the
Radda [10]

please elaborate i dont understande what your asking.

4 0
3 years ago
It is recommended that you create a budget for each (a)month (b)day (c)week (d)year
____ [38]
Depending on when you get paid.
If you get paid every week then weekly. 
Most of the time I would say to make a budget weekly just because it is easier to keep track of. 
so (C) 
8 0
3 years ago
Read 2 more answers
Other questions:
  • For a large sporting event the broadcasters sold 6565 ad slots for a total revenue of ​$145145 million. what was the mean price
    10·1 answer
  • Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they off
    13·1 answer
  • ___ is a method for developing the shortest schedule when the number or amount of available resources is fixed. a. Resource eval
    15·1 answer
  • Convert 39/5 to a mixed number written in lowest terms
    5·1 answer
  • The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of decl
    15·1 answer
  • The adjusting entry to account for use of prepaid insurance consists of: Multiple Choice a debit to Insurance Expense and a cred
    15·1 answer
  • A special agent is authorized to:
    11·1 answer
  • What was the general relationship between auto production and military aircraft production in the war years?
    15·1 answer
  • 06.06 segment exam A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic cr
    6·1 answer
  • Andrea earns $8 per hour and works 20 hours per week. She receives her paycheck for her hours worked during the week every Frida
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!