Calculate Cho's marginal revenue and marginal cost for the first seven frying pans she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. (? 40 35 Marginal Revenue 30 25 Marginal Cost 20 10 2. 7 QUANTITY (Frying pans) Cho's profit is maximized when she produces frying pans. When she does this, the marginal cost of the last frying pan she produces is , which is v than the price Cho receives for each frying pan she sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize her profit) is s which is than the price Cho receives for each frying pan she sells. Therefore, Cho's profit-maximizing quantity corresponds to the intersection of the Cho is a price taker, this last condition can also be written as v curves. Because COSTS AND REVENUE (Dollars per frying pan)

Calculate Cho's marginal revenue and marginal cost for the first seven frying pans she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. (? 40 35 Marginal Revenue 30 25 Marginal Cost 20 10 2. 7 QUANTITY (Frying pans) Cho's profit is maximized when she produces frying pans. When she does this, the marginal cost of the last frying pan she produces is , which is v than the price Cho receives for each frying pan she sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize her profit) is s which is than the price Cho receives for each frying pan she sells. Therefore, Cho's profit-maximizing quantity corresponds to the intersection of the Cho is a price taker, this last condition can also be written as v curves. Because COSTS AND REVENUE (Dollars per frying pan)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Rina runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Rina's total cost curve. On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven frying pans that Rina produces, including zero frying pans. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 □ 0 1 U 2 ■ U 3 4 5 QUANTITY (Frying pans) n 6 Total Cost 7 8 Total Revenue Profit ?
113. Subject :- Economy
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