Pearson\'s Mub & Mas × / @ Take a Test-Manoj Sapi G The marginal cost was S x \\

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Pearson's Mub & Mas × / @ Take a Test-Manoj Sapi G The marginal cost was S x G The marginal cost was S eC Secure https://www.mathxl.com/Student/PlayerTest.aspx?testld 173958942 x G Rhonda-sRo ECON-1301-61401-INTRO-INET (1) Test:Final Exam This Question: 1 pt 10f 60 (0 complete) Rhonda's Turkey Farm produced 1,100 turkeys last week The marginal cost was $35 a turkey, average variable cost was $15 a turkey, and the market price was $25 a turkey Rhonda rs profit, so if nothing changes she will the number of turkeys she produces to maximize her profit this week O A. not maximizing, increase OB. maxrnizing, increase c. maximizing, not change D. not maximizing, decrease E. maxim Zing, decrease

Explanation / Answer

Profit maximization is achieved when marginal cost = marginal revenue.

In perfect competition, marginal revenue equals the market price and is $25 a turkey

Because marginal cost exceeded marginal revenue, so the firm is not maximizing profit.

To maximize profit, the w company will decrease the output until marginal cost falls to $25 a turkey

So the correct answer is:- D:- Not maximizing; decrease

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