The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per week and the price per bike? 2. At this level of output, what is the firm's average total cost, and the economic profit per week? 3. What can we conclude as a result of the economic profit?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The graph shows the market for Mickey's Mountain Bikes.

1. What is the profit-maximizing output per week and the price per bike?

2. At this level of output, what is the firm's average total cost, and the economic profit per week?

3. What can we conclude as a result of the economic profit?

FIGURE 14.2
Problems 14 to 18
400
MC
АТС
350
300
250
200
150
100
MR
50
.....
100
200
Quantity (mountain bikes per week)
Price and cost
(dollars per bike)
Transcribed Image Text:FIGURE 14.2 Problems 14 to 18 400 MC АТС 350 300 250 200 150 100 MR 50 ..... 100 200 Quantity (mountain bikes per week) Price and cost (dollars per bike)
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