a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. Quantity P TR MR TC Profit 1 2 3 4 5 7 8
a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. Quantity P TR MR TC Profit 1 2 3 4 5 7 8
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Transcribed Image Text:a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a
constant marginal and average cost of $15.50 per pig reared.
Complete the table below using the information provided
ii. How many pigs will the farm produce in order to maximize profits?
Explain briefly why this is so.
Quantity
P
TR
MR
TC
Profit
1
2
3
4
7
LO
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