Use Figure 7 2 to answer the following questions (a) What rate of output maximizes total profit (b) What is the MR at that rate of output (c) What is the price (d) If output is increased by 1 pound beyond that point, is MC (i) larger or (ii) smaller than MR (e) What happens to total profits $14 13 ...

a 4 pounds of fish b 7 c 10 d MC 9 MR 5 e Total profits decrease Explanatio ...

Use Figure 7.2 to answer the following questions: (a) What rate of output maximizes total profit? (b)

Question:

Use Figure 7.2 to answer the following questions:

(a) What rate of output maximizes total profit?

(b) What is the MR at that rate of output?

(d) If output is increased by 1 pound beyond that point, is MC (i) larger or (ii) smaller than MR?

(e) What happens to total profits?

$14 13 Average total cost 12 11 10 Total profit Demand MR = MC locates maximum-profit output. Marginal cost Marginal rev

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Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

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Question Posted: Aug 30, 2017 11:51 PM

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Use Figure 7.2 to answer the following questions: (a) What rate of output maximizes total profit? (b)

Question:

$14 13 Average total cost 12 11 10 Total profit Demand MR = MC locates maximum-profit output. Marginal cost Marginal revenue 2 3 4 5 QUANTITY (pounds of fish per hour) PRICE OR COST (per pound)

Step by Step Answer:

a 4 pounds of fish b 7 c 10 d MC 9 MR 5 e Total profits decrease Explanatio...View the full answer

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