I don\'t know how to do this i looked everywhere in the book and there\'s no log
ID: 1189975 • Letter: I
Question
I don't know how to do this i looked everywhere in the book and there's no logical way to get a real answer help!
ULink Chapter 6 HomworkXL 1 ezto.mheducation.com/hm.tpx Q Search Suppose a firm has the following costs Output (units) 10 12 13 15 16 17 18 19 Total Cost $50 $52 $56 $62 $70 $80 $92 $106 $122 $140 Instructions: Enter your responses as whole numbers (a) If the prevalling market price is $14 per unit, how much should the firm produce? 168 units (b) How much profit will it earn at that output rate? 112 (c) If the market price dropped to $8, how much should this firm produce? 160 units (d) How much profit will it make at that lower price? 3:21 PM Search the web and Windows ^ 10/11/2015Explanation / Answer
a)at price $14, the firm should produce 17 units as this the level where producing 17th marginal cost is equal to the price, beyond this level the firm will earn loss per unit as marginal costs will be higher than price
b) profit = revenue - costs = 17*14 - 106 = $132
c)at price $8, the firm should produce 14 units as this the level where producing 14th marginal cost is equal to the price, beyond this level the firm will earn loss per unit as marginal costs will be higher than price
d . profit = revenue - costs = 14*8 - 70 = $42
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.