Do We Really Have Income?
Carter Manufacturing has $50 million of 8% bonds outstanding which were issued at par
many years ago. Because of cash flow problems, the company is behind in contributions
to its bonds retirement fund. The m
When Q*< 2 million, all goods purchased are sold to Walmart at $200/unit. As market
price is the same for all goods, Marginal Revenue(MR)=200.Hence profit will be
maximized when MR=MC1=200.
When Q*=2 million, all good produced are sold to