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2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.

2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
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2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.
Transcribed Image Text:2. Draw an isoprofit map and demand curve for a firm that is making a loss. 3. Calculate and sketch the corresponding isoprofit curve over the range one to six units per month for a business that wants to make a profit of $600 per month where a) it has a constant cost per unit of $400. b) It has fixed costs of $300 and variable cost of $50 for the first unit which then rises by $50 for each additional unit produced.
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