profit assignment
Using this table, calculate the profit at each level of bicycle production.
30 3 40 70 90 90 80
Using this table, calculate the marginal cost of each of these quantities of bikes.
80 20 50 60
Sample response:Based on the data in the graphs, Alonzo's Cycling should produce five or six bikes if it wants to maximize its profits. This is because the sixth bike is the point at which the marginal revenue matches the marginal cost. The company will make $90 in profit with the sale of its fifth or sixth bike each day. After that, the profit begins to fall with each sale. Which of these arguments did you include in your response? Check all that apply.
Based on the data in the graphs, Alonzo's Cycling should produce five or six bikes if it wants to maximize its profits. This is because the sixth bike is the point at which the marginal revenue matches the marginal cost. The company will make $90 in profit with the sale of its fifth or sixth bike each day. After that, the profit begins to fall with each sale.
This graph shows the marginal costs of each bike, along with the market price. Select the correct answer from the options available. Based on this graph, at which level of production does the producer's profit stop increasing?
D
ample response: If the market price of bikes rises from $50 to $60, then the company will want to produce a larger quantity of bikes. This is because the overall marginal revenue is now higher and will be maximized differently. Before profit was maximized at six bikes, now the profit will be maximized by producing more bikes, perhaps seven. Which of these ideas did you include in your response? Check all that apply.
ample response: If the market price of bikes rises from $50 to $60, then the company will want to produce a larger quantity of bikes. This is because the overall marginal revenue is now higher and will be maximized differently. Before profit was maximized at six bikes, now the profit will be maximized by producing more bikes, perhaps seven. Which of these ideas did you include in your response? Check all that apply.
This graph shows the marginal cost of producing each bike. Select the correct answer from the options available. Based on this graph, which bike has a marginal cost of $20?
bike 4