R K COSTS AND REVENUE (Dollars per romper) 8 S 2 S QUANTITY (Rompers) ange points (square symbol) to plot Marginal Revenue Marginal Cost cost at each quantity. Iyana's profit is maximized when they produce a total of rompers. At this quantity, the marginal cost of the final romper they produce is , an amount than the price received for each romper they sell. At this point, the marginal cost of produding one more romper (the first romper beyond the profit maximizing quantity) is 5 an amount than the price received for each romper they sell. Therefore, Iyana's profit-maximizing quantity occurs at the point of intersection between the curves. Because Iyana is a price takes, the previous condition is equivalent to

R K COSTS AND REVENUE (Dollars per romper) 8 S 2 S QUANTITY (Rompers) ange points (square symbol) to plot Marginal Revenue Marginal Cost cost at each quantity. Iyana's profit is maximized when they produce a total of rompers. At this quantity, the marginal cost of the final romper they produce is , an amount than the price received for each romper they sell. At this point, the marginal cost of produding one more romper (the first romper beyond the profit maximizing quantity) is 5 an amount than the price received for each romper they sell. Therefore, Iyana's profit-maximizing quantity occurs at the point of intersection between the curves. Because Iyana is a price takes, the previous condition is equivalent to

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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