Question 4 a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. i. ii. Quantity P TR MR TC Profit 1 2 3 4 5 6 7 8 LO

Question 4 a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. i. ii. Quantity P TR MR TC Profit 1 2 3 4 5 6 7 8 LO

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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