Asked by Greyson Grubb on Jun 12, 2024
Verified
If the firm is maximizing profits,total profit will be approximately
A) -$150.
B) $500.
C) $270.
D) $600.
E) $0.
Maximizing Profits
A strategy or goal of increasing the difference between the total revenue and the total cost as much as possible.
Total Profit
The total income of a business after all expenses and costs are subtracted from the total revenue.
- Scrutinize the marginal cost and marginal revenue to establish the ideal production levels.
- Understand the relationship between monopolies, economic efficiency, and market structures.
Verified Answer
JB
Joseph BergnerJun 18, 2024
Final Answer :
C
Explanation :
When a firm is maximizing profits, it operates where marginal revenue equals marginal costs. The exact amount of total profit depends on the difference between total revenue and total costs at this point. Without specific data on costs and revenues, we can't calculate the exact figure, but among the given options, $270 is a plausible amount for a profit-maximizing firm.
Learning Objectives
- Scrutinize the marginal cost and marginal revenue to establish the ideal production levels.
- Understand the relationship between monopolies, economic efficiency, and market structures.
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