Suppose the market for relay switches is considered perfectly competitive and is in equilibrium at a price of S5,000 per pallet of relay switches. Callahan Relay produces relay switches at an average total cost given by ATC = Q1 + 1,500,000/Q and marginal cost given by MC= 2Q, where Q measures pallets of relay switches.
1. If Callahan Relay maximizes profit, how much profit will it earn?
a. $125,000
b. $88,000
c. $2.5 million
d. $4.75 million
Answers: 1
Business, 22.06.2019 02:40
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Suppose the market for relay switches is considered perfectly competitive and is in equilibrium at a...
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