If p = 20 - y and TC(y)= 4y, then when y = 4:
A)profits are positive.
B)profits are maximizing.
C)profits are negative.
D)profits are zero.

Name: If p = 20 - y and TC(y)= 4y, then when y = 4: A)profits are positive. B)profits are maximizing. C)profits are negative. D)profits are zero.
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Question

Quizplus · Accepted Answer

Profits are calculated as p*y - TC(y). Substituting the given values, we get profits = (20 - y)*y - 4y. When y = 4, profits = (20 - 4)*4 - 4*4 = 16*4 - 16 = 64 - 16 = 48, which is positive.

If P = 20 - Y and TC(y)= 4y, Then