Paul runs a shop that sells printers. Paul is a perfect competitor and can sell each printer for a price of $300
The marginal cost of selling one printer a day is $200; the marginal cost of selling a second printer is $250; and the marginal cost of selling a third printer is $350. To maximize his profit, Paul should sell A) one printer a day.
B) two printers a day.
C) three printers a day.
D) more than three printers a day.
B
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Price ________ measures the responsiveness of the quantity of a good demanded or supplied to a change in its price.
a. setting b. elasticity c. locking d. consistency
A minimum wage that is set below a market's equilibrium wage will
a. result in an excess demand for labor, that is, unemployment. b. result in an excess demand for labor, that is, a shortage of workers. c. result in an excess supply of labor, that is, unemployment. d. have no impact on employment.
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. If Greene Enterprises produces 6,000 units of output, what is estimated average total cost (ATC)?
A. $75.25 B. $40 C. $80 D. $168.42 E. $90
Suppose a goldsmith (banker) received an additional number of gold coins to put in his safe and had stopped making loans. What would be happening to his reserve ratio?
A. It would be rising. B. It would be falling. C. It would stay the same. D. There is not enough information to answer this question.