Suppose That the Total Fixed Cost for a Guitar Manufacturer

question 75

Multiple Choice

Suppose that the total fixed cost for a guitar manufacturer is $90.The marginal cost of the first guitar produced is $80 and decreases by $10 for the next three guitars produced.Thereafter,the marginal cost increases by $10 for each successive guitar.
-Refer to the information above to answer this question.If the manufacturer can sell her guitars for $100,what will be her profit or loss at the optimal output?

• A)She will break even.
• B)A loss of $150.
• C)A profit of $140.
• D)A profit of $150.
• E)A profit of $240.

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Definitions:

Structure

In chemistry, this relates to the arrangement of atoms within a molecule, determining its physical and chemical properties.

Organic Product

A molecule that has been produced as a result of an organic reaction, prominently featuring carbon atoms in its structure.

Reaction

A process in which substances, the reactants, are converted into different substances, the products, involving rearrangement of atomic or molecular structures.

Gilman Reagent

Organometallic compounds of the form R2CuLi, utilized in organic chemistry for carbon-carbon bond formation reactions.