8. The table below shows the total cost incurred by the firm operating in perfectly competitive...
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8. The table below shows the total cost incurred by the firm operating in perfectly competitive market. Quantity (coats per day) Total cost (per coat) 7 $1,410 1,640 8 9 10 11 1,910 2,210 2,560 The price of a coat is $285. How many coats per day should the firm produce to maximize economic profit? (Show detailed calculations below) 9. A fall in the price of X from €12 to €8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. a) What is the cross elasticity of demand between products X and Y? b) Are products X and Y most likely substitutes or complements and why? 8. The table below shows the total cost incurred by the firm operating in perfectly competitive market. Quantity (coats per day) Total cost (per coat) 7 $1,410 1,640 8 9 10 11 1,910 2,210 2,560 The price of a coat is $285. How many coats per day should the firm produce to maximize economic profit? (Show detailed calculations below) 9. A fall in the price of X from €12 to €8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. a) What is the cross elasticity of demand between products X and Y? b) Are products X and Y most likely substitutes or complements and why?
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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