Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 45 40 $9 $8/5 6. 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= 2. $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit?

Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 45 40 $9 $8/5 6. 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= 2. $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize 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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