Suppose a Firm's Profit Is Given by the Equation $\pi$ = -200 + 80Q - 0

question 34

Multiple Choice

Suppose a firm's profit is given by the equation $\pi$ = -200 + 80Q - 0.2Q2,where $\pi$ = profit and Q = quantity.Which of the following is true?

• A)The firm's marginal profit [M\(\pi\)] is given by the equation: M\(\pi\) = 80 - 0.2Q.
• B)The firm's profit-maximizing output is Q = 400.
• C)The firm's profit-maximizing output is Q = 200.
• D)The firm's marginal profit [M\(\pi\)] is given by the equation: M\(\pi\) = 80 - 2Q.
• E)The firm's profit-maximizing output is Q = 800.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead costs to specific activities, providing more accurate insights into the costs of producing a product.

Batch Setup

It refers to the process and costs associated with configuring production equipment or facilities to produce a specific batch of products.

Materials Handling

Materials handling involves the moving, protecting, storing, and controlling of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Activity Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.