Quantity Total Revenue Marginal Cost $0 1 $10 $2 2 $20 $4 3 $30 $6 $40 $8 5 $50 $12 $60 $14 7 $70 $16 Refer to the above table for a firm's production per day. Suppose the firm has fixed costs of $10 and output price is also $10. The firm will maximize profits by producing |-10 units of output. At the profit-maximizing output level, the firm's total revenue will be $-2 its total costs will be $4 and its profit will be $8

Quantity Total Revenue Marginal Cost $0 1 $10 $2 2 $20 $4 3 $30 $6 $40 $8 5 $50 $12 $60 $14 7 $70 $16 Refer to the above table for a firm's production per day. Suppose the firm has fixed costs of $10 and output price is also $10. The firm will maximize profits by producing |-10 units of output. At the profit-maximizing output level, the firm's total revenue will be $-2 its total costs will be $4 and its profit will be $8

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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