A company produces radios which it sells for $33 each. There are fixed costs of $27,000 each month and marginal costs of $15 per radio. How many radios must be produced and sold per month to make a profit of $1800?

A company produces radios which it sells for $33 each. There are fixed costs of $27,000 each month and marginal costs of $15 per radio. How many radios must be produced and sold per month to make a profit of $1800?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 1CQQ

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Concept explainers

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.

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4) A company produces radios which it sells for $33 each. There are fixed costs of $27,000 each month and marginal costs of $15 per radio. How many radios must be produced and sold per month to make a profit of $1800?

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