a) At what output is the firm’s profit maximised and  How much profit is made at this output?    (b) Draw the total profit TΠ curve over the range of output where positive profit is made.   (d) How much is total fixed cost, At what output is the price elasticity of demand equal to -1 and  At what outputs does the firm break even?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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(a) At what output is the firm’s profit maximised and  How much profit is made at this output? 

 

(b) Draw the total profit curve over the range of output where positive profit is made.

 

(d) How much is total fixed cost, At what output is the price elasticity of demand equal to -1 and  At what outputs does the firm break even?

9. There are two methods of showing the profit-maximising position for a firm. The first uses total
revenue and total cost curves.
The figure below shows the total cost and revenue curves for a firm on the same diagram.
TC
60
50
40
TR
30
20
10
10
20 30
40 50
60
70 80 90
Quantity
Costs and revenues (£)
Transcribed Image Text:9. There are two methods of showing the profit-maximising position for a firm. The first uses total revenue and total cost curves. The figure below shows the total cost and revenue curves for a firm on the same diagram. TC 60 50 40 TR 30 20 10 10 20 30 40 50 60 70 80 90 Quantity Costs and revenues (£)
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