Syukri, Iqmal and Amir run the only shop in Wang Ulu. They sell electrical goods such as televisions, washing machines, etc. However, their objectives are different from each other. Syukri wants to make as much profit as he can, Iqmal wants to sell as many goods as he can without losing money, and Amir wants to earn as much revenue as he can. The graph below illustrates their respective profits. (Note: The length of each square on the Y-axis represents RM100, and the length of each square on the X-axis represents 100 units.) What is the quantity for Syukri? Revenue, Cost MC AC MR AR Quantity O 100 O 200
Syukri, Iqmal and Amir run the only shop in Wang Ulu. They sell electrical goods such as televisions, washing machines, etc. However, their objectives are different from each other. Syukri wants to make as much profit as he can, Iqmal wants to sell as many goods as he can without losing money, and Amir wants to earn as much revenue as he can. The graph below illustrates their respective profits. (Note: The length of each square on the Y-axis represents RM100, and the length of each square on the X-axis represents 100 units.) What is the quantity for Syukri? Revenue, Cost MC AC MR AR Quantity O 100 O 200
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Your answer
Syukri, Iqmal and Amir run the only shop in
Wang Ulu. They sell electrical goods such as
televisions, washing machines, etc.
However, their objectives are different from
each other. Syukri wants to make as much
profit as he can, Iqmal wants to sell as many
goods as he can without losing money, and
Amir wants to earn as much revenue as he
can. The graph below illustrates their
respective profits. (Note: The length of each
square on the Y-axis represents RM100, and
the length of each square on the X-axis
represents 100 units.) What is the quantity
for Syukri?
Revenue, Cost
MC
AC
Quantity
100
200
300
Transcribed Image Text:What is the price for Amir?
100
200
300
400
500
600
700
800
900
1000
Expert Solution
Step 1 Syukri, Iqmal and Amir run only shop in Wang Ulu
Syukri want profit maximization, Iqmal wants output maximization and Amir wants sales/ revenue maximization
They are operating only shop in Wang Ulu, therefore rule of monopoly market applies,
Therefore maximum output and maximum profit can be attained where marginal revenue equals marginal cost i.e. MR=MC.
Each square on 'Y' axis represents RM100
And each square on 'X' axis represents 100 units
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