2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.

2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Draw an isoprofit map and demand curve for a firm that is making a loss.
3.
Calculate and sketch the corresponding isoprofit curve over the range one to six units
per month for a business that wants to make a profit of $600 per month where
a) it has a constant cost per unit of $400.
b)
It has fixed costs of $300 and variable cost of $50 for the first unit which then rises
by $50 for each additional unit produced.

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