Description of this paper

marginal cost! total revenue! marginal revenue

Description

solution


Question

Maximizing Profits;fixed costs = $50;output! total cost! ! marginal cost! total revenue! marginal revenue!!;1! ! $60! ! ! $10! ! ! $40! ! !?! ! !;2! !?! ! ! 20! ! !?! ! ! 25! ! !;3! !?! ! ! 30! ! ! 105! ! !?! !;4! !?! ! ! 70! ! ! 130! ! !?!;(1)At what level of output should the firm produce if it wants to maximize profit (the difference;between revenues and costs)? Explain.!;(2) How much money is the firm making at this level of output?;(3) If fixed costs rise to $60, how does its decision change?!

 

Paper#26998 | Written in 18-Jul-2015

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