Exhibit 13-6

-In Exhibit 13-6, if the rental price of each sewing machine is $70, how many machines should be used?

Question

Exhibit 13-6
 
-In Exhibit 13-6, if the rental price of each sewing machine is $70, how many machines should be used?

Quizplus · Accepted Answer

The point where the total cost equals the total benefit (revenue) is where profit is maximized. In this case, the profit will be maximized at the point where the total cost (y-axis) intersects with the total revenue (x-axis). Based on the graph, this point occurs at three machines, where the total cost equals $210 and the total revenue equals $300, resulting in a profit of $90. Using any more or less than three machines will result in less profit.

Exhibit 13-6 -In Exhibit 13-6, If the Rental Price of Each Sewing