You Are the Manager of a Firm That Sells Its

question 67

Multiple Choice

You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 50 + 3Q².The profit-maximizing output for your firm is:

• A) 10.
• B) 20.
• C) 30.
• D) 40.

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Definitions:

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as salaries of permanent staff and rent for factory space.

Production Volume

The total quantity of products manufactured during a specific period.

Fixed Component

A cost or value that remains unchanged regardless of the level of output or activity, such as rent or salaried wages.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in activity level but not in the same proportion.