Assume the price is EUR 4,00 and is constant at any quantity, Calculate the profit at the profit-maximizing output and show the area of profit on the graph. Determine below what price would the firm exit the market in the long run. Explain your answer.
Assume the price is EUR 4,00 and is constant at any quantity, Calculate the profit at the profit-maximizing output and show the area of profit on the graph. Determine below what price would the firm exit the market in the long run. Explain your answer.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
The table below displays the cost and output per week (in EUR) of the company «Creativia» which produces community textile face masks.
| Total Product Quantity | Total variable costs, Euro |
| 0 | 0 |
| 250 | 350 |
| 450 | 450 |
| 650 | 600 |
| 750 | 750 |
| 800 | 950 |
| 830 | 1300 |
| 850 | 1800 |
Assume the
Calculate the profit at the profit-maximizing output and show the area of profit on the graph.
Determine below what price would the firm exit the market in the long run. Explain your answer.
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