sume that a firm can produce product A, product B, or product C with the resources it currently ys. These resources cost the firm a total of $30 per week. Assume, for the purposes of this em, that the firm's costs cannot be changed. The market prices and the quantities of A, B, and C resources can produce are given below. Note: PROFIT AND REVENUE ARE DIFFERENT. Product Market price (P) Output (Q) Revenue (TR) Cost (TC) Profit А $5.00 8 30 $. 4.00 20 30 1.50 50 30 Compute the firm’s profit when it produces A, B, or C and enter these data in the table. Profit = Total Revenue (TR) –Total Cost (TC) = TR – TC TR = P *Q = per unit price of output * Quantity of output e.g., Product A: Revenue (TR) = $ ; Cost (TC) = $ ; so, Profit = $. %3D Which product will the firm produce? Firm will produce product _(A, B, or C ) that generates highest profit.

sume that a firm can produce product A, product B, or product C with the resources it currently ys. These resources cost the firm a total of $30 per week. Assume, for the purposes of this em, that the firm's costs cannot be changed. The market prices and the quantities of A, B, and C resources can produce are given below. Note: PROFIT AND REVENUE ARE DIFFERENT. Product Market price (P) Output (Q) Revenue (TR) Cost (TC) Profit А $5.00 8 30 $. 4.00 20 30 1.50 50 30 Compute the firm’s profit when it produces A, B, or C and enter these data in the table. Profit = Total Revenue (TR) –Total Cost (TC) = TR – TC TR = P Q = per unit price of output Quantity of output e.g., Product A: Revenue (TR) = $ ; Cost (TC) = $ ; so, Profit = $. %3D Which product will the firm produce? Firm will produce product _(A, B, or C ) that generates highest profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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