The diagram on the right depicts the revenues and costs of a firm producing vodka. a. What
Question:
.png)
a. What will the firm's profit be if it decides to produce 20 units of output? 120 units?
b. Suppose the firm is producing 70 units of output and decides to cut output to 60. What will happen to the firm's profit as a result?
c. Suppose the firm is producing 70 units of output and decides to increase output to 80. What will happen to the firm's profit as a result?
d. At an output level of 70, draw a line tangent to the total cost curve. Does your line look similar to the total revenue curve? What does the slope of the total revenue curve indicate? What does the slope of the total cost curve indicate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a At both production levels 20 and 120 units of vodka the profit is equal to 0 TR TC b ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
2+ Reviews
10+ Question Solved
Related Book For 
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Question Posted:
