Suppose your firm has a marginal revenue given by the equation mr = 10 - q, where q is the quantity produced and sold. this means that the seventh unit of output brings in 10 - 7 = $ 3 of additional revenue. the marginal cost for your firm is given by the equation mc = 2 + q. this means that the seventh unit of output increases the marginal cost by 2 + 7 = $ 9.
if the firm produces the seventh unit of output, marginal cost will be marginal revenue. in which of the following cases, will the profit of the firm be maximized?
(a) when the marginal cost of producing an additional unit equals the marginal revenue from that unit.
(b) when the average cost of producing an additional unit equals the marginal revenue from that unit.
(c) when the marginal cost of producing an additional unit is less than the marginal revenue from that unit.
(d) when the average cost of producing an additional unit is less than the marginal revenue from that unit. the profit-maximizing level of output is units.

About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.

Advertisers are usually very conscious of their audience. choose an issue of a popular magazine such as time, sports illustrated, vanity fair, rolling stone, or the like. from that issue select three advertisements to analyze. try to determine the audience being appealed to in each advertisement and analyze the appeals used to persuade buyers. how might the appeals differ is the ads were designed to persuade a different audience.

Ichelle is attending college and has a part-time job. once she finishes college, michelle would like to relocate to a metropolitan area. she wants to build her savings so that she will have a "nest egg" to start her off. michelle works out her budget and decides she can afford to set aside $9090 per month for savings. her bank will pay her 4 %4% per year, compounded monthly, on her savings account. what will be michelle's balance in five years?