Answered: a. What is the profit-maximizing…

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Economics

a. What is the profit-maximizing output? Output: b. What price will the firm charge? Price: $1

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

5:37
Price, costs
72
60
48
36
24
12
X
150 450 750
300
0
Quantity per period
MR
a. What is the profit-maximizing output?
Output:
b. What price will the firm charge?
Price: $
AC
600 900 1050 200¹3501500
MC

a. What is the profit-maximizing output?
Output:
b. What price will the firm charge?
Price: $
c. How much excess capacity exists at the output in (a
Excess capacity:
d. Is Blue Smooth making economic profits?
(Click to select)
e. Is the current situation long-run equilibrium?
(Click to select)

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