Amos is a dot-com entrepreneur who has established a Web site at which people can design and buy abackpack. Amos pays $800 a month for a Web server and Internet connection. The backpacks that customers design are made to order by another firm, and Amos pays this firm $20 a backpack. Amos has no other costs. The table shows the demand schedule for Amos's backpacks. What is Amos's profit-maximizing output, price, and economic profit? Price (dollars per backpack) Quantity (backpacks per mon 100 0 80 20 60 40 40 60 20 80 0 100
Amos is a dot-com entrepreneur who has established a Web site at which people can design and buy abackpack. Amos pays $800 a month for a Web server and Internet connection. The backpacks that customers design are made to order by another firm, and Amos pays this firm $20 a backpack. Amos has no other costs. The table shows the demand schedule for Amos's backpacks. What is Amos's profit-maximizing output, price, and economic profit? Price (dollars per backpack) Quantity (backpacks per mon 100 0 80 20 60 40 40 60 20 80 0 100
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 6SQP
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Transcribed Image Text:Amos is a dot-com entrepreneur who has
established a Web site at which people can design
and buy abackpack.
Amos pays $800 a month for a Web server and
Internet connection. The backpacks that customers
design are made to order by another firm, and
Amos pays this firm $20 a backpack. Amos has no
other costs.
The table shows the demand schedule for Amos's
backpacks.
What is Amos's profit-maximizing output, price, and
economic profit?
Price
(dollars per backpack)
Quantity
(backpacks per mon
100
0
80
20
60
40
40
60
20
80
0
100
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