-Carol's Candies Is Producing 150 Boxes of Candy a Day

question 372

Multiple Choice

-Carol's Candies is producing 150 boxes of candy a day. Carol's marginal revenue and marginal cost curves are shown in the figure above. To increase her profit, Carol should

• A) increase her output.
• B) decrease her output.
• C) maintain the current level of output because it gives her the maximum profit.
• D) Not enough information is given to determine if Carol should increase, decrease, or not change her level of output.

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Definitions:

Supplies Expense

encompasses the cost associated with items used in daily operations, not directly tied to the production of goods or services but necessary for conducting business.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, representing its reduction in value over time.

Net Book Value

Refers to the value of an asset after deducting accumulated depreciation and amortization from its original cost.

Wages Expense

The total cost incurred by a company for paying its employees' salaries and wages during a specific period.