You Are the Manager of a Firm That Sells Its

question 83

Multiple Choice

You are the manager of a firm that sells its product in a competitive market at a price of $50.Your firm's cost function is C = 40 + 5Q².The profit-maximizing output for your firm is:

• A) 4/5.
• B) 10.
• C) 5.
• D) 45.

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Definitions:

Opportunity Cost

The bypass of potential advantages from different routes when a specific option is taken.

Agricultural Production

The process and methods used in the cultivation of plants and raising of animals for food, fiber, biofuel, medicinal plants, and other products used to sustain and enhance human life.

Labor Force

The total number of people employed and unemployed, seeking employment in an economy.

Marginal Cost

The additional expense incurred from creating one more unit of a product, highlighting how production costs change with output levels.