Table #1: The following table presents cost and revenue information for Soper's Port Vineyard.OutputProducedMarginalRevenueTotal Cost Marginal CostQuantityDemandedPriceTotal Revenue100XXXXXXXXXXX$80$0XXXXXXX1150$501$80$80$80202$52$80$160$80257$553$80$240$803$80$320$4004317$604$80$80$80385$685$80$80$4806.465$80$560$80$80$807562$977$640$80682$1208.8.Refer to Table#1. Consumers are willing to pay $80 per unit of port wine. What is the output level of Soper's Port Vineyard to maximize its economic profit?O 6 unitsO 7 unitsO 8 unitsO 5 units

The profit maximizing output condition is:P=MR=MC

Table #1: The following table presents cost and revenue information for Soper's Port Vineyard. Output Produced Quantity Demanded Marginal Revenue Total Cost Marginal Cost Price Total Revenue 100 XXXXXXXXXXX $80 $0 XXXXXXX 1 150 $50 1 $80 $80 $80 202 $52 $80 $160 $80 257 $55 3 $80 $240 $80 3 $60 4 $80 $320 $80 4. 317 $400 $480 $68 $80 $80 385 $80 $80 6. 465 $80 7 $80 $560 $80 7. 562 $97 S80 $640 $80 8. 682 $120 8. Refer to Table#1. Consumers are willing to pay $80 per unit of port wine. What is the output level of Soper's Port Vineyard to maximize its economic profit? O 6 units O 7 units O 8 units O 5 units

Table #1: The following table presents cost and revenue information for Soper's Port Vineyard. Output Produced Quantity Demanded Marginal Revenue Total Cost Marginal Cost Price Total Revenue 100 XXXXXXXXXXX $80 $0 XXXXXXX 1 150 $50 1 $80 $80 $80 202 $52 $80 $160 $80 257 $55 3 $80 $240 $80 3 $60 4 $80 $320 $80 4. 317 $400 $480 $68 $80 $80 385 $80 $80 6. 465 $80 7 $80 $560 $80 7. 562 $97 S80 $640 $80 8. 682 $120 8. Refer to Table#1. Consumers are willing to pay $80 per unit of port wine. What is the output level of Soper's Port Vineyard to maximize its economic profit? O 6 units O 7 units O 8 units O 5 units

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 1MC

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