d. Now assume the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds. What willBuddies profit or loss be per week?$e. Buddies earns a normal profit whenO marginal cost equals marginal revenue at the minimum of marginal cost.O marginal cost equals average cost.average cost equals average revenue at the minimum of average cost. The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm thatproduces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 perpair.Buddies Production CostsQuantityMCATCof Ear Buds($)($)201.00252.001.20302.461.41353.511.71404.112.01455.432.39505.992.75558.473.27

The answer to the question is as follows :

d. Now assume the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds. What wil Buddies profit or loss be per week? e. Buddies earns a normal profit when O marginal cost equals marginal revenue at the minimum of marginal cost. O marginal cost equals average cost. O average cost equals average revenue at the minimum of average cost.

d. Now assume the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds. What wil Buddies profit or loss be per week? e. Buddies earns a normal profit when O marginal cost equals marginal revenue at the minimum of marginal cost. O marginal cost equals average cost. O average cost equals average revenue at the minimum of average cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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