Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X and the supplier's cost. Quantity Marginal Cost Price $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 0 380 1 2 390 410 430 5 460 6 500 7 550 610 800 8 700 9 770 790 600 10 A. Determine the supplier's profit-maximizing output quantity. Explain your answer B. At what price should the supplier charge to maximize its profit? Explain your answer C. Suppose at the profit-maximizing output quantity you have determined in part A the average variable cost is $428.33 and the average total cost is $628.33. Calculate the total profit at the profit-maximizing output quantity
Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X and the supplier's cost. Quantity Marginal Cost Price $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 0 380 1 2 390 410 430 5 460 6 500 7 550 610 800 8 700 9 770 790 600 10 A. Determine the supplier's profit-maximizing output quantity. Explain your answer B. At what price should the supplier charge to maximize its profit? Explain your answer C. Suppose at the profit-maximizing output quantity you have determined in part A the average variable cost is $428.33 and the average total cost is $628.33. Calculate the total profit at the profit-maximizing output quantity
Chapter1: Making Economics Decisions
Section: Chapter Questions
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answer part B and part C of Question 1.
![Question 1
Suppose there is only one supplier in the market of product X. The following table shows
partial information of product X and the supplier's cost.
Quantity
Marginal Cost
Price
$1,700
1,500
1,400
1,300
1,200
1,100
1,000
900
0
380
1
2
390
410
430
5
460
6
500
7
550
610
800
8
700
9
770
790
600
10
A. Determine the supplier's profit-maximizing output quantity. Explain your answer
B. At what price should the supplier charge to maximize its profit? Explain your
answer
C. Suppose at the profit-maximizing output quantity you have determined in part A
the average variable cost is $428.33 and the average total cost is $628.33.
Calculate the total profit at the profit-maximizing output quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F336cd699-d13b-4b2d-8b94-f6220082f389%2F27ecb582-d18d-4ea3-9ca4-5f887151b20b%2Fefyau8.png&w=3840&q=75)
Transcribed Image Text:Question 1
Suppose there is only one supplier in the market of product X. The following table shows
partial information of product X and the supplier's cost.
Quantity
Marginal Cost
Price
$1,700
1,500
1,400
1,300
1,200
1,100
1,000
900
0
380
1
2
390
410
430
5
460
6
500
7
550
610
800
8
700
9
770
790
600
10
A. Determine the supplier's profit-maximizing output quantity. Explain your answer
B. At what price should the supplier charge to maximize its profit? Explain your
answer
C. Suppose at the profit-maximizing output quantity you have determined in part A
the average variable cost is $428.33 and the average total cost is $628.33.
Calculate the total profit at the profit-maximizing output quantity
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