Ask Question
BusinessBusiness
29 May, 11:41

Many marginal cost curves are U-shaped. As a result, it is possible that the MC curve hits the demand or price line at two output levels. Which is the profit-maximizing output? Why

+1
Answers (1)
  1. 29 May, 12:10
    0
    Many marginal cost curves are U-shaped., because the marginal cost i s relatively high at small quantities of output and is not proportional with the production increases.

    Profit is maximized when marginal cost curve intersects demand from below because at any greater quantity than this marginal cost is greater than marginal revenue.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Many marginal cost curves are U-shaped. As a result, it is possible that the MC curve hits the demand or price line at two output levels. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $4,000. The division sales for the year were $1,058,000 and the variable costs were $861,000.
Answers (1)
A worker in Thailand can earn $12 per day making cotton cloth on a hand loom. A worker in the United States can earn $82 per day making cotton cloth with a mechanical loom. What is the likely explanation for the difference in wages?
Answers (1)
The knowledge and skill that enable workers to be productive is called a) human capital b) talent capital c) human supply d) talent supply
Answers (1)
Assuming Net Income for the year is $250,000, what is the net operating cash flows given the following information: Increase in Salaries Payable $19,500 Depreciation Expense $6,000 Increase in Prepaid Rent $29,000 Loss on sale of asset $1,350
Answers (1)
All depository institutes offer atms in many different locations
Answers (1)
New Questions in Business
If the u. s. government increases the deficit and federal debt, what happens to the value of the u. s. dollar?
Answers (1)
Why are imports considered as a leakage factor? A. Imports do not generate domestic income. B. Domestic industry loses ground as imports increase. C. Imports are taxed heavily, which is a secondary leakage factor. D.
Answers (1)
The primary way to determine whether an idea constitutes "common knowledge" is: whether there is an expectation that the readers and the author would be very familiar with the material. whether the material appears in an encyclopedia.
Answers (1)
Dave has arranged a catered lunch for his team members to celebrate the completion of their work so they can see one another for a final time before being assigned to new teams. Dave's team is now in which stage of team development?
Answers (1)
Contributions to a Coverdell Education Savings Account must cease when the beneficiary reaches the age of: A 16 B 18 C 21 D 30
Answers (1)
Home » Business » Many marginal cost curves are U-shaped. As a result, it is possible that the MC curve hits the demand or price line at two output levels. Which is the profit-maximizing output? Why
Sign Up Forgot Password?