Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, and he is producing at a profit maximizing level Q*, calculate his profit. (Hint: compute MR and MC to find Q*) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120 Select one: a. $45 b. $30 c. $35 d. $15 e. $0 Clear my choice
Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, and he is producing at a profit maximizing level Q*, calculate his profit. (Hint: compute MR and MC to find Q*) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120 Select one: a. $45 b. $30 c. $35 d. $15 e. $0 Clear my choice
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Mo owns a Coffee truck which operates in a
Q |
TC |
0 |
$30 |
10 |
$50 |
20 |
$63 |
30 |
$73 |
40 |
$78 |
50 |
$95 |
60 |
$120 |
Select one:
a.
$45
b.
$30
c.
$35
d.
$15
e.
$0
Clear my choice
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