You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. The profit-maximizing output for your firm is:
A. 45.
B. 10.
C. 4/5.
D. 5.
Answer: D
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Locating a point on a utilities possibilities frontier gives you information about
A) both equity and efficiency. B) equity but not efficiency. C) efficiency but not equity. D) profitability but not efficiency.
If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
A. Increase aggregate demand and aggregate supply B. Decrease aggregate demand and aggregate supply C. Decrease aggregate demand and increase aggregate supply D. Increase aggregate demand and decrease aggregate supply
Solar energy has unlimited potential
Indicate whether the statement is true or false
If the marginal cost curve shifts upward, a profit-maximizing, nondiscriminating monopolist is likely to respond in the short run by
a. raising price and increasing output b. raising price and decreasing output c. keeping price constant and increasing output d. reducing price and increasing output e. shutting down