At what output price would the farmer be indifferent in producing the 500 units of output given that the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit. Explain.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.4P
icon
Related questions
Question
At what output price would the farmer be indifferent in producing the 500 units of output given that the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit. Explain.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Labor Supply
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage