Question

The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit. If ProPhone sells four phones, the company will

a. break evenb. lose moneyc. maximize profitsd. make some profit

Answer 1

Answer: I found the Chart

Quantity / Price / Total Revenue / Marginal Revenue / Total Cost / Marginal Cost

0 220 0 0 90 0

1 200 200 200 170 80

2 180 360 160 200 30

3 160 480 120 290 90

4 150 600 120 340 50

5 140 700 100 400 60

6 135 810 90 500 100

7 130 910 100 620 120

Explanation: The correct answer is "d. make some profit".

Because while he is getting a little profit (600 - 340 = 260), he would maximize his earnings if he sold 6 units, (810 - 500 = 310).