The marginal cost of alexas guide to street people

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125. The marginal cost of Alexa’s  Guide to Street People and Their Pets  is constant at $5. Alexa sells  5,000 copies per year at $20 per copy. She would like to increase readership and hold total profit  constant. If the price goes to $15, how many copies must she sell? a. 10,000 b. 9,000 D,A c. 7,500 d. 6,000 126. Thomas Edison once complained that he was not making a profit selling light bulbs because his  plants were operating 25 percent below capacity. He estimated that he could increase output 25  percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign  market at a price below what he called the “cost of production.” We can deduce that Edison really  meant D,I 127. A profit-maximizing firm always M,R d. produces every unit of output for which MR > MC. 128. If output is increased beyond the point where total profit is maximized, E,A 129. Total profit is maximized where a. MR = MC. b. marginal profit is zero. c. the slope of the marginal profit curve is zero. M,I d. All of the above are correct.
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248 Chapter 7/Output, Price, and Profit: The Importance of Marginal Analysis 130. When marginal cost exceeds marginal revenue, M,A a. marginal profit < 0. b. the firm should increase output. c. marginal profit + marginal cost > marginal revenue. d. marginal cost < marginal revenue – marginal profit. GENERALIZATION: THE LOGIC OF MARGINAL ANALYSIS AND MAXIMIZATION 131. What decision rule should be followed to maximize the net benefit of some variable? E,R
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