A firms marginal profit can be defined as the change in its profit when output increases by
Question:
A firm’s marginal profit can be defined as the change in its profit when output increases by one unit.
a. Compute the marginal profit for each change in Ned’s Beds’ output in Table.
b. State a complete rule for finding the profit maximizing output level in terms of marginalprofit.
Transcribed Image Text:
Output (Troy Ounces of (per Troy Tota Marginal Total Marginal (7) Gold per Day) Ounce) Revenue Revenue Cost Cost Profit -$1,100 $900 -$1,200 $400 2 800 $ 500 300 $1,000 $500 6 $1,300 $1,400 $ 900 8 $1,100 $1,000 $,300 10 $ 500
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a Output Total Profit Marginal Profit 0 300 250 1 50 350 2 300 350 3 650 200 4 85...View the full answer
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Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
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