suppose you are a perfectly competitive firm producing computer memory chips.your production capacity is 1000 units per year.ypur marginal cost is rs.10 per chip up to capacity.you have fixed cost rs.10000,if production is positive and rs.0 if you shut down.what are your profit maximizing levels of production and profut if market price is (a) rs.5 per chip (b) rs.15 per chip and (c) rs.25 per chip.
suppose you are a perfectly competitive firm producing computer memory chips.your production capacity is 1000 units per year.ypur marginal cost is rs.10 per chip up to capacity.you have fixed cost rs.10000,if production is positive and rs.0 if you shut down.what are your profit maximizing levels of production and profut if market price is (a) rs.5 per chip (b) rs.15 per chip and (c) rs.25 per chip.
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
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 6E
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