Suppose That Dent Carr's Long-Run Total Cost of Repairing S

question 8

Multiple Choice

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 50. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

• A) 2
• B) 0
• C) 4
• D) 3
• E) 6

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Definitions:

Income Tax Loss

A situation where tax-deductible expenses exceed taxable revenues, potentially reducing taxable income in future periods through loss carryforwards.

Tax Loss Carryforward

A tax provision that allows a company to use its current loss towards future profits to reduce taxable income.

Taxable Income

The amount of income subject to taxation, after all deductions and allowances have been considered, according to the tax laws.

Reportable Segments

Portions of a business that can be separately identified by products and services or by geographical areas, providing relevant information to evaluate its financial statements.