Assignment 2 (Q) P.. Economics Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X and the supplier's cost Marginal Cost Price Quantity $1,700 1,500 1,400 1,300 1,200 1,100 1,000 0 1 380 2 390 3 410 430 460 6 500 900 7 550 800 610 700 770 600 10 790 A. Determine the supplier's profit-maximizing output quantity. Explain your answer. B. At what price should the supplier charge to maximize its profit? Explain your answer. C. Suppose at the profit-maximizing output quantity you have determined in part A, the average variable cost is $428.33 and the average total cost is $628.33. Calculate the total profit at the profit-maximizing output quantity 1

Assignment 2 (Q) P.. Economics Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X and the supplier's cost Marginal Cost Price Quantity $1,700 1,500 1,400 1,300 1,200 1,100 1,000 0 1 380 2 390 3 410 430 460 6 500 900 7 550 800 610 700 770 600 10 790 A. Determine the supplier's profit-maximizing output quantity. Explain your answer. B. At what price should the supplier charge to maximize its profit? Explain your answer. C. Suppose at the profit-maximizing output quantity you have determined in part A, the average variable cost is $428.33 and the average total cost is $628.33. Calculate the total profit at the profit-maximizing output quantity 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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