A restaurant owner is currently operating at a profit while serving 800 customers per week. At this output level, marginal cost exceeds marginal revenue (MC > MR). To maximize profit, the owner shouldSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aincrease outputbdecrease outputcleave output at 800 customers per week
Question
A restaurant owner is currently operating at a profit while serving 800 customers per week. At this output level, marginal cost exceeds marginal revenue (MC > MR). To maximize profit, the owner shouldSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aincrease outputbdecrease outputcleave output at 800 customers per week
Solution 1
The restaurant owner should decrease output. This is because when marginal cost (MC) is greater than marginal revenue (MR), it means that the cost of serving an additional customer is more than the revenue gained from serving that customer. By decreasing output, the owner can reduce costs and increase profit.
Solution 2
The restaurant owner should decrease output. This is because when marginal cost (MC) is greater than marginal revenue (MR), it means that the cost of serving an additional customer is more than the revenue gained from that customer. Therefore, to maximize profit, the owner should reduce the number of customers served until MC equals MR.
Solution 3
The restaurant owner should decrease output. This is because when marginal cost (MC) is greater than marginal revenue (MR), it means that the cost of serving an additional customer is more than the revenue gained from serving that customer. By decreasing output, the owner can reduce costs and increase profit.
Solution 4
The restaurant owner should decrease output. This is because when marginal cost (MC) is greater than marginal revenue (MR), it means that the cost of serving an additional customer is more than the revenue gained from serving that customer. By decreasing output, the owner can reduce costs and increase profit.
Solution 5
The restaurant owner should decrease output. This is because when marginal cost (MC) is greater than marginal revenue (MR), it means that the cost of serving an additional customer is more than the revenue gained from serving that customer. By decreasing output, the owner can reduce costs and increase profit.
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