| Author: | Homework Help Classof1 | ISBN: | 1230000148101 |
| Publisher: | Classof1 | Publication: | July 4, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000148101 |
| Publisher: | Classof1 |
| Publication: | July 4, 2013 |
| Imprint: | |
| Language: | English |
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 +2 q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q. The fixed cost of production is $200.)
(a) If the price of watches is $100, how many watches should you produce to maximize profit?
(b) What will the profit level be?
(c) At what minimum price will the firm produce a positive output?
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 +2 q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q. The fixed cost of production is $200.)
(a) If the price of watches is $100, how many watches should you produce to maximize profit?
(b) What will the profit level be?
(c) At what minimum price will the firm produce a positive output?
