The marginal cost is greater than the marginal revenue when 70 items are

The marginal cost is greater than the marginal

  • No School
  • AA 1
  • 45

This preview shows page 29 - 35 out of 45 pages.

The marginal cost is greater than the marginal revenue when 70 items are produced, so profits are maximized when some quantity less than 70 is produced. The revenue from the 71st item exceeds the cost to produce it, so producing the 71st item will increase the total profit. You Answered The marginal cost is greater than the marginal revenue, so the firm cannot make a profit. The marginal cost is greater than the marginal revenue when 70 items are produced, so total profit is negative when 70 units are produced. Correct Answer The cost of producing the 71st item exceeds the revenue it will generate, so producing the 71st item will reduce the total profit. Since C (70)>R (70) C′(70)>R′(70), the cost to produce the next unit exceeds its revenue, and producing that unit will decrease the total profit. The only data in the problem is about the increased cost and revenue for producing the 71st item. There is no information about whether total profits are maximized or whether total profits must be positive or negative. Quiz Score: 17.5 out of 25
Image of page 29

Subscribe to view the full document.

Previous Next Last Attempt Details: Time: 42 minutes Current Score: 17.5 out of 25 Kept Score: 17.5 out of 25 1 More Attempt available Take the Quiz Again (Will keep the highest of all your Score for this attempt: 23 out of 25 Submitted Sep 30 at 3:16pm This attempt took 35 minutes. Question 1 2 / 2 pts Choose the function f f such that on the interval (a,b) (a,b), f (x)<0 f′ (x)<0 and f ′′ (x)>0 f″(x)>0.
Image of page 30
Correct! III. II. IV. I. On the interval (a,b) (a,b) the function should be decreasing ( f (x)<0 f′(x)<0) and concave up ( f ′′ (x)>0 f″(x)>0). Only III. is concave up on the interval (a,b) (a,b). A linear function has f ′′ (x)=0 f″(x)=0. III. is also decreasing on (a,b) (a,b).
Image of page 31

Subscribe to view the full document.

Question 2 2 / 2 pts Which function is continuous at x=0 x=0? x 2 +4sin(x) x2+4sin(x) Correct! x+1cos(x) x+1cos(x) log(x) log(x) x 2 x x2x 2x(2x+3) 2x(2x+3) If the denominator of a ration function is zero at x=0 x=0, then the function is not defined at x=0 x=0, and so is not continuous there. Therefore the functions x 2 +4sin(x) x2+4sin(x), x 2 x x2x, and 2x(2x+3) 2x(2x+3) are all discontinuous at x=0 x=0. The function log(x) log(x) is not defined for x≤0 x≤0, so it cannot be continuous at x=0 x=0.
Image of page 32
Since cos(0)=1 cos(0)=1, the function x+1cos(x) x+1cos(x) is continuous at x=0 x=0, but it is discontinuous at x= π2 x=π2, and all other points where cos(x)=0 cos(x)=0. Question 3 2 / 2 pts To produce 500 items, the total cost is $6,000. The total revenue after selling 500 items is $10,000. If when the production level is 500, the marginal cost is $10 per item and the marginal revenue is $20 per item, estimate the total profit when 501 items are produced and sold. $4,020 Correct! $4,010 $10,020 $10 $10,010 The profit when producing and selling 500 500 items is 10,000−6,000=4,000 10,000−6,000=4,000. The marginal profit from producing and selling one additional unit is approximately MR(500)−MC(500)=20−10=10 MR(500)−MC(500)=20−10=10. Therefore the
Image of page 33

Subscribe to view the full document.

total profit for producing and selling 501 501 items is approximately $4,010 $4,010.
Image of page 34
Image of page 35

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes