The Figure Shows the Graphs of the Cost and Revenue

question 228

Multiple Choice

The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells
binoculars. Use the information in the figure to answer the question.

-More than how many binoculars must be produced and sold for the company to have a profit gain?

• A)750 binoculars
• B)2250 binoculars
• C)1500 binoculars
• D)2700 binoculars

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Definitions:

Profit-Maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal revenue is equal to marginal cost.

Lawn-Mowing

The process of cutting the grass in a lawn to maintain a specified height and appearance.

Short-Run Supply Curve

A graphical representation showing how the quantity supplied varies with price in the short term, when at least one input is fixed.

Snow-Clearing Service

A service that provides snow removal from public and private spaces to ensure safety and accessibility during winter months.