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 Price Quantity 0 Marginal Cost $1,700 1,500 1,400 1,300 1,200 1,100 1,000 1 380 2 390 410 430 5 460 500 7 900 550 800 610 700 770 600 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

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 Price Quantity 0 Marginal Cost $1,700 1,500 1,400 1,300 1,200 1,100 1,000 1 380 2 390 410 430 5 460 500 7 900 550 800 610 700 770 600 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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2.5CE

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