Question
Based on the table answer the following questions. a) What are the profit maximizing level of output and price? b) Is there any economic
Based on the table answer the following questions.
a) What are the profit maximizing level of output and price?
b) Is there any economic profit at the profit maximizing level output and price? If yes, how much? Show calculation.
c) State two (2) sources of diseconomies of scale
Price Quantity Demanded (RM) 2200 2000 1800 1600 1400 1200 (kg/day) 5 6 7 8 9 10 Total Revenue 11000 12000 12600 12800 12600 12000 Marginal Revenue 0 1000 600 200 -200 -600 Quantity Produced (kg/day) 5 6 7 8 9 10 Total Marginal Cost Cost 8000 0 9000 1000 10200 1200 11600 1400 13200 1600 15000 1800
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a The profit maximizing level of output is 7 kgday This is wher...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
