Suppoee at the cument level of production a firm's marginal revenue equals 51.00, their average total costs curenty equal S1.200, and their marginal cost equals S00. The firm OA should expand output because their revenue will increase by $1.000 OB. should not expand output because their profit will decrease by $200 OC should expand output because their profit will increase by S100 OD. There is not information given to determine whether this fim should expand output or not

C or prouuctiol 13 INCIeaseu. 15. A certain firm has the capacity to produce 840,000 units of product per year. At present, it is operating at 60% of capacity. The firm's annual income is $504,000. Annual fixed costs are $212,000, and the variable costs are equal to $0.392 unit of product. What is the firm's annual profit or loss? Answer: $94,432 profit b. per а. At what volume of sales does the firm break even? What will be the profit or loss at 75%, 85%, and 90% of capacity on the basis of constant income per unit and constant variable cost per unit? bas c.

Question 19 What is the marginal cost of the fourth unit? Q 1 FC VC 50 50 2 3 4 50 588 60 ○ 70 ○ 80 O O O TC MC AFC AVC ATC 60 120 60 500

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