Refer to the table below, which shows costs for the company Exotic Fruit that se

Question

Refer to the table below, which shows costs for the company Exotic Fruit that sells fruit baskets in a perfectly competitive market. Use this information to answer the questions below 2. umber of TFC TVC TC MC Fruit Baskets $50 $0 $50 50 10 60 10 50 15 65 5 50 21 71 6 50 31 81 10 50 46 96 15 50 68 118 22 Assume the market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell fruit basket(s). a. At this level of output, their profit is Assume the market price of a fruit basket is $15. To maximize profits, Exotic Fruit should sell fruit basket(s). At this level of output, their profit is b. c.

Explanation / Answer

A) when price=22 quantity sold=6 and profit=TR-TC=P*Q-TC=132-118=14

B)when price=15 then quantity soldout=5

C) profit=15*5-96=-21

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