Buppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C=200 + 2q?, where q is the level of output and Cis total cost. (The marginal cost of production is 4q; the fixed cost is $200.) 3. a. If the price of watches is $100, how many watches should you produce to maximize profit? b. What will the profit level be? C. At what minimum price will the firm produce a positive output?

Buppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C=200 + 2q?, where q is the level of output and Cis total cost. (The marginal cost of production is 4q; the fixed cost is $200.) 3. a. If the price of watches is $100, how many watches should you produce to maximize profit? b. What will the profit level be? C. At what minimum price will the firm produce a positive output?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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