Suppose That the Marginal Revenue for a Product Is

question 107

Multiple Choice

Suppose that the marginal revenue for a product is and the marginal cost is with a fixed cost of $900. How many units will result in a maximum profit? ​

• A) 9 units
• B) 8 units
• C) 7 units
• D) 11 units
• E) 10 units

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Definitions:

Opportunity Cost

The value of the best alternative forgone where a choice needs to be made between several mutually exclusive alternatives.

Aggregate Income

The total amount of income earned by all individuals or entities within an economy.

World Economy

The global network of economic activities, trade, and production that transcends national borders, involving various economies of the world.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not state controlled.