a. Your firm is producing a good in a perfectly competitive market. If you know that when you produce 25 units per day, your total costs are $100, and when you produce 26 units, your total costs are $110. The market price for the product is $15. What should you do to maximize profits?
b. Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the ATC of clocks is $95, the AVC is $90 and the price of clocks is $85. The firm is currently producing at the level of output where MC equals price. What should the firm do to maximize its profits?
c. Suppose Peter's Clock Works produces in a perfectly competitive market. Suppose the ATC of clocks is $85, the AVC is $80 and the price of clocks is $82.50. The firm is currently producing at the level of output where MC equals price. What should the firm do to maximize its profits?
d. Austin sells golf balls in a perfectly competitive market. At its current level of golf ball production, his marginal costs equal to $1, and AVC is rising. If the market price of golf balls is $2, what should Austin do to maximize profits?
e. Austin sells golf balls in a perfectly competitive market. At its current level of golf ball production, his marginal costs equal to $2, and AVC is rising. If the market price of golf balls is $1, what should Austin do to maximize profits?
a. Your firm is producing a good in a perfectly competitive market. If you know that when you produce 25 units per day, your total costs are $100, and when you produce 26 units, your total costs are $110. The market price for the product is $15. What should you do to maximize profits?
b. Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the ATC of clocks is $95, the AVC is $90 and the price of clocks is $85. The firm is currently producing at the level of output where MC equals price. What should the firm do to maximize its profits?
c. Suppose Peter's Clock Works produces in a perfectly competitive market. Suppose the ATC of clocks is $85, the AVC is $80 and the price of clocks is $82.50. The firm is currently producing at the level of output where MC equals price. What should the firm do to maximize its profits?
d. Austin sells golf balls in a perfectly competitive market. At its current level of golf ball production, his marginal costs equal to $1, and AVC is rising. If the market price of golf balls is $2, what should Austin do to maximize profits?
e. Austin sells golf balls in a perfectly competitive market. At its current level of golf ball production, his marginal costs equal to $2, and AVC is rising. If the market price of golf balls is $1, what should Austin do to maximize profits?
