Syukri, Iqmal and Amir run the only shop in Wang Ulu. They sell electrical goods such as televisions, washing machines, etc. However, their objectives are different from each other. Syukri wants to make as much profit as he can, Iqmal wants to sell as many goods as he can without losing money, and Amir wants to earn as much revenue as he can. The graph below illustrates their respective profits. (Note: The length of each square on the Y-axis represents RM100, and the length of each square on the X-axis represents 100 units.) What is the quantity for Syukri? Revenue, Cost MC AC MR AR Quantity O 100 O 200
Syukri, Iqmal and Amir run the only shop in Wang Ulu. They sell electrical goods such as televisions, washing machines, etc. However, their objectives are different from each other. Syukri wants to make as much profit as he can, Iqmal wants to sell as many goods as he can without losing money, and Amir wants to earn as much revenue as he can. The graph below illustrates their respective profits. (Note: The length of each square on the Y-axis represents RM100, and the length of each square on the X-axis represents 100 units.) What is the quantity for Syukri? Revenue, Cost MC AC MR AR Quantity O 100 O 200
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 25P: Becky and Sarah are sisters 1who share a room. Their room can easily get messy, and their parents am...
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Step 1 Syukri, Iqmal and Amir run only shop in Wang Ulu
Syukri want profit maximization, Iqmal wants output maximization and Amir wants sales/ revenue maximization
They are operating only shop in Wang Ulu, therefore rule of monopoly market applies,
Therefore maximum output and maximum profit can be attained where marginal revenue equals marginal cost i.e. MR=MC.
Each square on 'Y' axis represents RM100
And each square on 'X' axis represents 100 units
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