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

The production cycle refers to the cycle that shows the product manufacturing and the cycle of the product from the manufacturing unit to the distribution unit to avail the goods and services to the customers.

Alonzo's Cycling should produce five or six bikes if it wants to maximize its profits because the sixth bike is the point at which the marginal revenue matches the marginal cost. The company will make $90 in profit with the sale of its fifth or sixth bike each day. After that, the profit begins to fall with each sale because of the excess consumption of the product, it starts to slow down its consumption.

To know more about the production cycle of Alonzo’s Cycling, refer to the link below:

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