In Problem 1, Suppose That the Demand Curve for Antimacassars

question 2

Multiple Choice

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

• A) 6,500 antimacassars.
• B) 13,000 antimacassars.
• C) 19,500 antimacassars.
• D) 4,290 antimacassars.
• E) 3,250 antimacassars.

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Definitions:

Short-run Marginal Cost Curve

A curve that shows the change in total cost associated with producing one more unit of output in the short term.

Diminishing Marginal Returns

A principle that states as additional units of a variable input are added to fixed inputs, the additional output produced from each new unit eventually decreases.

Variable Resources

Inputs that change in quantity with levels of production, such as raw materials and labor.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.