Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs are £10, and she is capable of producing up to 6 shawls per week. (8%)Use that information to fill in the table Quantit yTotal Revenu eFixed CostVariable CostTotal CostProfit= Revenue – Total CostMarginal RevenueMargina l Cost0010 ------1 18 82 123 184 275 396 52 What quantity of shawls should Emma produce in order to maximize her profit?At the profit-maximizing level of output, how do marginal revenue and marginal cost compare?

Total cost (TC)= Total Fixed cost (TFC) +Total variable cost (TVC). TFC is cost associated with…

Answered: Emma sells hand-made shawls in a…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs are £10, and she is capable of producing up to 6 shawls per week. (8%)
Use that information to fill in the table

Quantit y	Total Revenu e	Fixed Cost	Variable Cost	Total Cost	Profit= Revenue – Total Cost	Marginal Revenue	Margina l Cost
0	0	10				---	---
1				18			8
2							12
3							18
4							27
5							39
6							52

What quantity of shawls should Emma produce in order to maximize her profit?
At the profit-maximizing level of output, how do marginal revenue and marginal cost compare?

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