Write three to five sentences explaining which levels of production provide Alonzo’s Cycling with the maximum profit.

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19-02-2022
Business

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Write three to five sentences explaining which levels of production provide Alonzo’s Cycling with the maximum profit.

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gatorboyx10 gatorboyx10 · Answer 1 · 2022-02-26T23:28:57+01:00

Answer:

If Alonzo's Cycling wants to maximize its profits, it should produce five or six bikes, according to the data in the graphs. This is due to the fact that the sixth bike is the point at which the marginal revenue and marginal cost are equal. With the sale of its fifth or sixth bike each day, the company will make a profit of $90. After that, with each sale, the profit begins to decline.

Explanation:

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