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a baker wants to establish a pie factory. the cost of leasing the factory is $1,000 per day. the profit-maximizing quantity of pies is 1,000 pies a day. each pie sells for $3 and costs only $2.10 to make. which of the following is a correct conclusion based on this information?

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tutorconsortium109

The correct conclusion based on this information is baker should not enter the industry.

What is the profit-maximizing quantity and price?

  • The amount that maximizes profits will be reached when MR = MC, or at the very last moment before marginal expenses start to outpace marginal income. MR = MC happens at an output of 5. The monopolist will set prices based on what the market will bear.
  • The amount of goods produced at which marginal revenue equals marginal cost, or when MR = MC, is the decision that will maximize profits for the monopoly.
  • If the monopoly produces less, MR > MC at those output levels, and the firm can increase profits by increasing output.
  • The company is in the red and must lower its output when marginal revenue is less than marginal cost. Therefore, when a company selects a level of output where its marginal revenue matches its marginal cost, profits are maximized.

Learn more about profit-maximizing quantity refer to :

https://brainly.com/question/28253283

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