Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 A 8 9 10 Total Cost Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? 46 $10 17 26 37 50 66 82 101 122 145 170 c. If the price of ties falls to $15, how many ties should the firm produce? tie nor da

Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 A 8 9 10 Total Cost Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? 46 $10 17 26 37 50 66 82 101 122 145 170 c. If the price of ties falls to $15, how many ties should the firm produce? tie nor da

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 1PA

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