This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the following statements is correct, based on the information shown? Marginal cost and marginal revenue ($) 9,000 - 8,000 7,000- 6,000 5,000 4,000 3,000 2,000- 1,000 0 -1,000 0 B m 10 20 30 40 C Revenue is greater when Q = 10 than if Q = 20. O Profit is greater when Q- 20 than when Q-10. Marginal cost Marginal revenue D 50 60 70 80 When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative. O The firm would not choose to produce at point E because marginal profit is zero. Quantity of cars, Q

This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the following statements is correct, based on the information shown? Marginal cost and marginal revenue ($) 9,000 - 8,000 7,000- 6,000 5,000 4,000 3,000 2,000- 1,000 0 -1,000 0 B m 10 20 30 40 C Revenue is greater when Q = 10 than if Q = 20. O Profit is greater when Q- 20 than when Q-10. Marginal cost Marginal revenue D 50 60 70 80 When Q = 40, the marginal cost is greater than the marginal revenue so the firm's profit must be negative. O The firm would not choose to produce at point E because marginal profit is zero. Quantity of cars, Q

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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