Suppose a Firm's Profit Is Given by the Equation π $\pi$

question 45

Multiple Choice

Suppose a firm's profit is given by the equation π = -200 + 80Q - .2Q². Which of the following is true?

• A) The firm's marginal profit is given by the equation: M\(\pi\)= 80 - .2Q.
• B) The firm's profit-maximizing output is Q = 400.
• C) The firm's profit-maximizing output is Q = 200.
• D) The firm's marginal profit is given by the equation: M\(\pi\)= 80 - 2Q.
• E) The firm's profit-maximizing output is Q = 800.

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Definitions:

Preceding Year

The year that immediately comes before the current year in a chronological sequence.

Unusual Item

An uncommon or rare financial transaction or event that is reported separately in financial statements due to its significance.

Current Operations

Activities directly related to the day-to-day running of a business, including sales, production, and administrative tasks that influence the company's current profitability.

Industry Averages

Statistical measures that represent the average performance or benchmark for companies in a particular industry, often used for comparison and analysis.