5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level? a. 150 units b. 80 units c. 50 units d. less than 50 units e. between 50 and 80 units Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Please use as much detail as possible in the explanation.
5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level? a. 150 units b. 80 units c. 50 units d. less than 50 units e. between 50 and 80 units Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Please use as much detail as possible in the explanation.
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 4PA
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Question
5. Consider the marginal revenue and marginal cost
a. |
150 units |
b. |
80 units |
c. |
50 units |
d. |
less than 50 units |
e. |
between 50 and 80 units |
Choose and explain your answer above thoroughly--graphical, algebraically, numerically.
Please use as much detail as possible in the explanation.
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