C Secure http://www.matholoon Student/PlayerHomework.aspx?homeworkld-4S 1774770&
ID: 1121261 • Letter: C
Question
C Secure http://www.matholoon Student/PlayerHomework.aspx?homeworkld-4S 1774770&questionId-18; flush -) ECO 201 W/F 12.30pm Homework: Homework - Chapters 11 & 12 18 of 19 (17 complete) core: 0 of 1 pt Concept: Profit Maximization Table 2 Sophia grows Christmas trees. Her cost of production is shown in the table below Total Cost $50 $75 $135 5205 $285 $375 $475 Christmas Trees Suppose the market for Christmas trees is perfectly competitive and that the market price for Christmas trees is $85 per tree How many Christmas trees should Sophia grow Sophia should grow trees (Enter your response as an integer value) ter your answer in the answer box and then click Check Answer 2 pa taining 0 Type here to 2 4 5Explanation / Answer
Answer
The firm produces at P=MC or closest smaller MC
MC of n the unit=(TC of n units -TC of p units )/(n-p)...............n>p
MC(2)=75-50=25
MC(3)=135-75=60
MC(4)=205-135=70
MC(5)=285-205=80
MC(6)=375-285=90
MC(7)=475-375=100
Sophia will grow 5 trees where MC is closest smaller than P
80<85
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.