Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is 30 (ii) Yann's variable profit is (iii) The producer surplus is 45 If Yann also has a fixed cost of $50, then: (iv) his total profit is -5

Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is 30 (ii) Yann's variable profit is (iii) The producer surplus is 45 If Yann also has a fixed cost of $50, then: (iv) his total profit is -5

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

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 5E

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