For a certain product, the cost function is linear with fixed costs of $480. if the product will sell for $25 per unit and the break even quantity is 80 units, find the marginal cost and marginal profit for the product.

Marginal Cost = $19

Marginal Profit = $6

Explanation:

Break even quantity =

80 =

Contribution = = 6 per unit

Contribution = Sales - Variable cost = $25 - VC = $6

$25 - $6 = VC = $19

Marginal cost is cost incurred for every additional unit produced, i.e. variable cost = $19, as fixed cost remains constant.

Marginal revenue is additional revenue on sale of every unit = contribution per unit = $6

Marginal cost = $19

Marginal Profit = $6

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

i just took the test and it is financing