Part 1In the figure, the marginal cost of the last unit produced by the profit maximizing firm is A. $15. B. $10. C. $5. D. $20. Part 1

Question

Part 1In the​ figure, the marginal cost of the last unit produced by the profit maximizing firm is A. ​$15. B. ​$10. C. ​$5. D. ​$20. Part 1

BlackTom AI · Accepted Answer

First, I will restate the problem and list all the choices to ensure clarity about what we are evaluating.
Question: In the figure, the marginal cost of the last unit produced by the profit maximizing firm is A. $15, B. $10, C. $5, D. $20.
Options: A) $15, B) $10, C) $5, D) $20.

Now, let's assess each option one by one, explaining why it could or could not be correct based on the concept of marginal cost at the profit-maximizing output level.

Option A: $15. At first glance, assuming the last unit’s marginal cost were $15, this would imply that producing that unit adds $15 to total cost. However, the profit-maximizing condition occurs where marginal cost equals marginal revenue (MC = MR). If the figure shows MR crossing MC at a price or revenue level that corresponds to MC = $10, then $15 would not be the correct marginal cost at the optimum. In short, unless the diagram indicates MC equals $15 at the profit-maximizing quantity, this value would typically be inconsistent with the MR = MC rule for profit maximization.

Option B: $10. This option asserts that the marginal cost of the last unit is $10. If the diagram demonstrates that the quantity chosen by the firm (the profit-maximizing output) occurs where MC equals MR and the MC value at that quantity is $10, then this would be correct. Remember the core principle: maximize profit where the additional revenue from one more unit (MR) equals the additional cost of that unit (MC). If MR = MC = $10 at the chosen output, $10 is the correct marginal cost for the last unit.

Option C: $5. If MC were $5 for the last unit, it would imply that the firm could increase profit by expanding output until MC rises to MR. This would only be true if MR were $5 at the optimal point. If the diagram shows MR crossing MC at a higher MC, or if MR exceeds MC at higher output until MC climbs above MR, then $5 would be incorrect because the profit-maximizing condition would not be met at MC = $5.

Option D: $20. Similar reasoning applies: if MC were $20 for the last unit, the profit-maximizing condition would require MR = $20 at the chosen output. If the figure indicates MR equals MC at a different value, such as $10, then $20 would misstate the marginal cost at the optimum. Additionally, a very high MC like $20 could imply that the optimal output is smaller than the produced quantity if MR falls below $20 beyond the optimum point.

To sum up the reasoning across options, the central test is the MR = MC rule for profit maximization. Each incorrect option would only be valid if the diagram explicitly shows MR equaling that MC value at the profit-maximizing quantity. The correct option aligns with the MC value that matches MR at the profit-maximizing output as depicted in the figure, which is $10 in this case, making option B the accurate choice.

Homework:ch12_homework

Part 1In the figure, the marginal cost of the last unit produced by the profit maximizing firm is A. $15. B. $10. C. $5. D. $20. Part 1

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Homework:ch12_homework

Part 1In the​ figure, the marginal cost of the last unit produced by the profit maximizing firm is A. ​$15. B. ​$10. C. ​$5. D. ​$20. Part 1

查看解析

登录即可查看完整答案

类似问题

An assumption of the BECOMP model is:

When the average total cost curve is downward sloping, what must be true about the marginal cost curve?

Refer to the accompanying graph to answer the next question. The firm is experiencing gains from specialization up to what level of output along the marginal cost curve?

A company produces a popular brand of cookies. In the short run, the size of its factory and equipment are fixed, but it can hire more or fewer workers. Suppose the company observes that its marginal product of labor is increasing. What will happen to its marginal cost of production?

When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC after the increase is

更多留学生实用工具

希望你的学习变得更简单

Part 1In the figure, the marginal cost of the last unit produced by the profit maximizing firm is A. $15. B. $10. C. $5. D. $20. Part 1