Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X market and the supplier's Cost. Marginal Cost Price TC Quantity Demanded 0 70 $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 /120 L010 380 1 390 2 410 3 430 4 460 500 6 550 7 17. 610 800 8 770 700 9 -I80 790 600 10 A. Determine the supplier's profit-maximizing output quantity. B. At what price should the supplier charge to maximize its profit? Explain answer. C. Suppose at the profit-maximizing output quantity you have determined in part A, the average variable cost is $428.33 and the average total cost is $628.33 Calculate the total profit at the profit-maximizing output quantity. 5 0

Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X market and the supplier's Cost. Marginal Cost Price TC Quantity Demanded 0 70 $1,700 1,500 1,400 1,300 1,200 1,100 1,000 900 /120 L010 380 1 390 2 410 3 430 4 460 500 6 550 7 17. 610 800 8 770 700 9 -I80 790 600 10 A. Determine the supplier's profit-maximizing output quantity. B. At what price should the supplier charge to maximize its profit? Explain answer. C. Suppose at the profit-maximizing output quantity you have determined in part A, the average variable cost is $428.33 and the average total cost is $628.33 Calculate the total profit at the profit-maximizing output quantity. 5 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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