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Consumer & Producer Surplus · Question 13 of 70

What is the workshop's greatest daily profit?

Question 13

MediumOriginal question

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

What is the workshop's greatest daily profit?

₹28Correct answerYour answer₹48Correct answerYour answer₹60Correct answerYour answer₹88Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

At $x = 4$ : $R = 120 - 32 = 88$ and $C = 16 + 24 + 20 = 60$ .
Profit $= 88 - 60 = 28$ rupees.

Worth noting

₹48 leaves out the fixed ₹20.

Concept: The maximum profit
Typical timeTypical: 120 s
Your timeYours: —

The rule this testsTotal cost from marginal cost

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