Asked by
Hillman Smith
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 $800 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.
Selling Price
The price at which a product or service is sold to customers.
Marginal Cost
Expenditure incurred in producing an additional unit of a good or service.
- Perceive the ramifications of setting production at a level where the marginal cost corresponds with marginal revenue.
- Investigate the determinants guiding an organization's choice to alter production quantities in reaction to fluctuations in costs.
Verified Answer
JB
Learning Objectives
- Perceive the ramifications of setting production at a level where the marginal cost corresponds with marginal revenue.
- Investigate the determinants guiding an organization's choice to alter production quantities in reaction to fluctuations in costs.