Homework: Homework- Chaplers TTOI core: 0 of 1 pt oncept: Profit Maximization Ta
ID: 1121269 • Letter: H
Question
Homework: Homework- Chaplers TTOI core: 0 of 1 pt oncept: Profit Maximization Table 2 Sophia grows Christmas trees. Her cost of production is shown in the table below 18 of 19 (18 complete) Total Cos $50 575 $135 $205 $285 5375 $475 Christmas Trees Suppose the market for Christmas trees is perfectly compeitive and that the market price for Christmas trees is 585 per tree How many Christmas trees should Sophia grow? Sophia should grow 5 trees. (Enter your response as an integer value) What is Sophia's profit? Sophia's profit is (Enter your response to the nearest dollar Enter your answer in the answer box and then click Check Answer All parts showing 10 Type here to search e ) - 2 3 4 5 6Explanation / Answer
MC (nth unit) = TC (n units) - TC ((n-1) units)
Market price = $85
Profit would be maximized at a quantity where P > = MC for the last quantity produced.
Sophia should grow = 5 trees
Profit = 85 x 5 - 285 = $140
Christmas Trees Total Cost ($) MC ($) 1 50 2 75 25 3 135 60 4 205 70 5 285 80 6 375 90 7 475 100Related Questions
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