How Many Local Maxima and Minima Does the Polynomial Have

question 7

Multiple Choice

How many local maxima and minima does the polynomial have? ​ ​

• A) 3 maxima and 1 minima
• B) 1 maxima 3 minima
• C) 1 maxima and 3 minima
• D) 2 maxima and 2 minima
• E) 3 maxima 4 minima

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Definitions:

ATC

Stands for Average Total Cost, a metric that represents the per-unit total cost of production, including both fixed and variable costs.

MR

Short for Marginal Revenue, the increase in total revenue a firm receives from selling one additional unit of a good or service.

Economic Profits

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent and salaries.