Asked by
Nikola Bjelajac
on Nov 04, 2024
Verified
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. To maximize profits, Robbie's Robots should
A) make no adjustments as they are already maximizing their profits.
B) increase their output.
C) decrease their output.
D) stop producing since it is earning a loss.
Marginal Cost
Incremental expenditure incurred by manufacturing an additional unit of a product or service.
- Acquire knowledge of marginal cost and its impact on how companies make decisions in a perfectly competitive market.
- Evaluate the influences determining a corporation's decision to change its output in response to variations in cost levels.
Verified Answer
NS
Learning Objectives
- Acquire knowledge of marginal cost and its impact on how companies make decisions in a perfectly competitive market.
- Evaluate the influences determining a corporation's decision to change its output in response to variations in cost levels.