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5 Aug 2019
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Suppose that a firm in a competitive market faces the following revenues and costs:
Quantity
Total Revenue
Total Cost
0
$0
$10
1
$9
$14
2
$18
$19
3
$27
$25
4
$36
$32
5
$45
$40
6
$54
$49
7
$63
$59
8
$72
$70
9
$81
$82
How many units of output will be produced at the profit maximization level?
9
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2 Jun 2021
Related textbook solutions
Related questions
Suppose that a firm in a competitive market faces the following revenues and costs:
| Quantity | Total Revenue | Total Cost |
| 0 | $0 | $3 |
| 1 | $7 | $5 |
| 2 | $14 | $9 |
| 3 | $21 | $15 |
| 4 | $28 | $23 |
| 5 | $35 | $33 |
| 6 | $42 | $45 |
| 7 | $49 | $59 |
At which level of production will the firm maximize profit?
3 units
4 units
5 units
6 units
A monopolist faces the following demand and cost schedules
|
Quantity |
Price |
Total Revenue |
Marginal Revenue |
Total Cost |
Marginal Cost |
|
7 |
$20 |
$36 |
|||
|
8 |
19 |
45 |
|||
|
9 |
18 |
54 |
|||
|
10 |
17 |
63 |
|||
|
11 |
16 |
72 |
|||
|
12 |
15 |
81 |
A. Complete the blanks in the table above
B. How much output should the monopolist produce?
C. What price should the firm charge?
D. What is the maximum amount of profit that the firm can earn?
