Consider the following model of a firm. The firm produces a single type of good. The firm can sell as many units of the good as it wishes at price p per unit. The cost of productin the good remains constant at c regardless of how many units are produced. The firm choses the number of units to produce q. What is the correct interpretation of the expression q(p-c) a. marginal cost b. quantity multiplied by total revenue c. profit per unit multuplied by quantity sold. d. revenue - marginal cost

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
ChapterP: Prerequisites
SectionP.1: Modeling The Real World With Algebra
Problem 23E: Grade Point Average In many universities students are given grade points for each credit unit...
icon
Related questions
Question

Consider the following model of a firm. The firm produces a single type of good. The firm can sell as many units of the good as it wishes at price p per unit. The cost of productin the good remains constant at c regardless of how many units are produced. The firm choses the number of units to produce q.

What is the correct interpretation of the expression q(p-c)

a. marginal cost

b. quantity multiplied by total revenue

c. profit per unit multuplied by quantity sold.

d. revenue - marginal cost

Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Similar questions
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage