Question

jims widgets creates mechanical tools that are used in factories. use the table and the drop - down menus to answer these questions. the profit when the company makes five widgets is $30. to maximize profit, the company should produce widgets per day. the companys profits would decrease by if en widgets.

Explanation:

Step1: Recall profit formula

Profit = Total Revenue - Total Cost. Total revenue for $n$ widgets is the sum of marginal revenues for each widget. Since marginal revenue is $13$ per widget, total revenue for $n$ widgets is $13n$.

Step2: Calculate profit for each quantity

For 1 widget: $13\times1 - 15=- 2$; for 2 widgets: $13\times2 - 18 = 26 - 18=8$; for 3 widgets: $13\times3 - 20 = 39 - 20 = 19$; for 4 widgets: $13\times4 - 25=52 - 25 = 27$; for 5 widgets: $13\times5 - 35=65 - 35 = 30$; for 6 widgets: $13\times6 - 48=78 - 48 = 30$; for 7 widgets: $13\times7 - 68=91 - 68 = 23$.

Step3: Determine maximum - profit quantity

We see that the profit is maximized at $30$ when either 5 or 6 widgets are produced.

Answer:

6