Profit maximizing level of output

Question

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Answer 1

Question

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

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Answer 2

Question

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

Answer 6

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

Answer 7

Chapter 53, Problem 1CYU

To determine

Profit maximizing level of output

Answer 8

Expert Solution & Answer

Explanation of Solution

Q	Total cost	Marginal cost
0	$2
1	10	8
2	20	10
3	33	13
4	50	17
5	71	21

At an output level of 3, the firm will earn a maximum profit because marginal cost went below the marginal revenue to being above MR at a quantity of four. And, it is passing by MR at the output level of 3.

MR is $15/unit. And, after 3 units the MC starts increasing more than MR, therefore, 3 units are the profit maximization level of output.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).

Answer 12

Ch. 53 - Prob. 1CYU Ch. 53 - Prob. 2CYU Ch. 53 - Prob. 1MCQ Ch. 53 - Prob. 2MCQ Ch. 53 - Prob. 3MCQ Ch. 53 - Prob. 4MCQ Ch. 53 - Prob. 5MCQ Ch. 53 - Prob. 6MCQ Ch. 53 - Prob. 7MCQ Ch. 53 - Prob. 1FRQ

Profit maximizing level of output

Profit maximizing level of output

Explanation of Solution

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Chapter 53 Solutions