Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable (wreaths) Average Total Cost (dollars) Marginal Cost (dollars) $20.00 Marginal Revenue (dollars) Cost (dollars) $20.00 5 $25.00 $64.00 6 18.00 22.00 22.00 64.00 7 24.00 28.00 64.00 64.00 8 29.00 32.00 60.00 64.00 9 36.00 39.00 95.00 64.00 10 49.00 52.00 169.00 64.00 Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths? wreaths b. What is the profit per unit if the profit-maximizing level of output is produced? $ c. What is the total economic profit generated by producing the profit-maximizing output? $

Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable (wreaths) Average Total Cost (dollars) Marginal Cost (dollars) $20.00 Marginal Revenue (dollars) Cost (dollars) $20.00 5 $25.00 $64.00 6 18.00 22.00 22.00 64.00 7 24.00 28.00 64.00 64.00 8 29.00 32.00 60.00 64.00 9 36.00 39.00 95.00 64.00 10 49.00 52.00 169.00 64.00 Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths? wreaths b. What is the profit per unit if the profit-maximizing level of output is produced? $ c. What is the total economic profit generated by producing the profit-maximizing output? $

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 14P

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