(Figure: Profit Margin 3) JoJo's company data is in the graphbelow. JoJo would earn a positive profit:Price or cost$12Marginalcost$11$10$9$8$7Averagetotal costAverage$6$5$4*varlable$3cost$2$1Demand$010 11 12 114 15 16 17 18 19 20 21Quantity$-1$-2$-3$-4Marginal$-5revenue$-6at any output greater than 2 but less than 15.at any output from eight to 16.at all output levels.any output less than 9O only at an output of nine.

The firm can obtain profit at the point of production where the price is greater than the average…

(Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a positive profit: Price or cost $12 $11 Marginal cost $10 $9 $8 "Average total cost Average varlable cost $7 $6 $5 $4 $3 $2 Demand $1 $0 „10 11 12 1914 15 16 17 18 19 20 21 Quantity $-1 $-2 $-3 Marginal $-5 revenue $-6 O at any output greater than 2 but less than 15. at any output from eight to 16. at all output levels. any output less than 9 only at an output of nine.

(Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a positive profit: Price or cost $12 $11 Marginal cost $10 $9 $8 "Average total cost Average varlable cost $7 $6 $5 $4 $3 $2 Demand $1 $0 „10 11 12 1914 15 16 17 18 19 20 21 Quantity $-1 $-2 $-3 Marginal $-5 revenue $-6 O at any output greater than 2 but less than 15. at any output from eight to 16. at all output levels. any output less than 9 only at an output of nine.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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