EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

Consumer & Producer Surplus · Question 12 of 70

How many items a day give the workshop the greatest profit?

Question 12

MediumOriginal question

A workshop's marginal cost is MC=6+2xMC = 6 + 2x and its marginal revenue is MR=30−4xMR = 30 - 4x, in rupees, for xx items a day. Its fixed cost is ₹20 a day.

How many items a day give the workshop the greatest profit?

Options for question 12

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Profit is greatest where MR=MCMR = MC: 30−4x=6+2x30 - 4x = 6 + 2x.

  2. 6x=246x = 24, x=4x = 4; beyond it MC rises above MR.

Worth noting

7.5 items is where MR alone is zero, the revenue maximum, ignoring cost.

Concept
Profit is greatest where MR = MC
Typical time
120 s
Your time
—
The rule this testsTotal cost from marginal cost
Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapterAll 70 questions in Consumer & Producer SurplusRevise the notes for Consumer & Producer Surplus