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.

Answer 1

Answer:

make some profit

Explanation:

if ProPhone sells 4 blazer phones, its marginal revenue = $120, while its marginal cost = $50

That means that the company is making some profit.

• total revenue = $600
• their total costs = $340
• net profit = $260

In order for the company to maximize its profits, their marginal revenue = marginal cost.