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. Quantity Marginal Cost Price $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 0 380 1 2 390 410 430 5 460 6 500 7 550 610 800 8 700 9 770 790 600 10 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. Quantity Marginal Cost Price $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 0 380 1 2 390 410 430 5 460 6 500 7 550 610 800 8 700 9 770 790 600 10 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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 20CTQ: A website offers a place for people to buy and sell emeralds, but information about emeralds can be...

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