1. Given: TC = 800 + 10g +1.5q ; Price = 100 a. Identify the output level (a*) that will maximize the profit of the fim. %3D b. Calculate the firm's profit. If Price falls to 40, c. Identify the new profit- maximizing output level. d. Assess if the firm gaining profits or incurring losses and how much. e. Justify why the firm should continue to produce at this price or not.
1. Given: TC = 800 + 10g +1.5q ; Price = 100 a. Identify the output level (a*) that will maximize the profit of the fim. %3D b. Calculate the firm's profit. If Price falls to 40, c. Identify the new profit- maximizing output level. d. Assess if the firm gaining profits or incurring losses and how much. e. Justify why the firm should continue to produce at this price or not.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
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3. Type only the solutions here, please do not handwritten it.
NOTE: ANSWER ONLY LETTER D&E.
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Hello, I awe your answers for following my request. And your answers are very detailed and understandable.
I just want to ask for you a request to answer the letters a, b, & c, in the given photo I've attached above.
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Note: Remove dollars sign in your as there's no money sign included in the given situation. Thank you and have a great day!
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