If marginal revenue is -0.0062+1,322 and the cost per unit is 0.9, how much do profits increase by when output is expanded from 94 units to 145 units? Please round your answer to the nearest whole number.

If marginal revenue is -0.0062+1,322 and the cost per unit is 0.9, how much do profits increase by when output is expanded from 94 units to 145 units? Please round your answer to the nearest whole number.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 7MC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

If marginal revenue is -0.0062 1,322 and the cost per unit is 0.9, how much do profits increase by when output is expanded from 94
+
units to 145 units? Please round your answer to the nearest whole number.

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