ECON 157 Study Guide - Midterm Guide: Budget Constraint, Capital Good, Marginal Cost
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What is Bill's economic profit at the profit-maximizing output level?
QuantityĀ |
Total cost |
Marginal cost | Price | Total revenue | Marginal revenue |
0 | 0 | Ā | 80 | Ā | Ā |
1 | 50 | Ā | 80 | Ā | Ā |
2 | 102 | Ā | 80 | Ā | Ā |
3 | 157 | Ā | 80 | Ā | Ā |
4 | 217 | Ā | 80 | Ā | Ā |
5 | 285 | Ā | 80 | Ā | Ā |
6 | 365 | Ā | 80 | Ā | Ā |
7 | 462 | Ā | 80 | Ā | Ā |
Table 14-12.
COSTS |
REVENUES |
|||||
Quantity |
Total |
Marginal |
Quantity |
|
Total |
Marginal |
0 |
$0 |
-- |
0 |
$80 |
Ā |
-- |
1 |
$50 |
Ā |
1 |
$80 |
Ā | Ā |
2 |
$102 |
Ā |
2 |
$80 |
Ā | Ā |
3 |
$157 |
Ā |
3 |
$80 |
Ā | Ā |
4 |
$217 |
Ā |
4 |
$80 |
Ā | Ā |
5 |
$285 |
Ā |
5 |
$80 |
Ā | Ā |
6 |
$365 |
Ā |
6 |
$80 |
Ā | Ā |
7 |
$462 |
Ā |
7 |
$80 |
Ā | Ā |
8 |
$582 |
Ā |
8 |
$80 |
Ā | Ā |
Ā
Refer to Table 14-12. At what quantity does Bill maximize profits?
a. 7
b. 8
c. 3
d. 6
Ā