How can producers maximize their profit? check all that apply.
a. They can work to increase their marginal cost.
b. They can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
d. The can lower prices to decrease marginal revenue.
e. They can keep marginal costs below marginal revenues. They can keep marginal revenues below marginal costs.
How can producers maximize their profit? check all that apply.
a. They can work to increase their marginal cost.
b. They can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
d. The can lower prices to decrease marginal revenue.
e. They can keep marginal costs below marginal revenues. They can keep marginal revenues below marginal costs.
Related questions
White machine shop fabricates polished steel casings. Theycurrently sell 20,000 casings at a selling price of $45. They havethe following cost structure:
Variable costs per unit | $30 |
Fixed costs | $150,000 |
Required (each requirement is independent):
What is the breakeven point in units?
Break-even point in units: |
Suppose that if they decrease their price to $38, they couldincrease sales to 30,000 units. What would the new profit be ifthey decrease their price to $38?
Profit if price is $38: |
What is the minimum price that White would be willing to chargein order to achieve an increase in sales to 30,000 units (round tothe nearest cent)?
Minimum price for increase to 30,000 units: |
Suppose that White can purchase a machine that would increasefixed costs to $300,000 and decrease unit variable costs to $20 perunit.At what level of production and sales would White beindifferent between the old machine and the new machine?
Level of production and sales (in units): |
