Answer the following question based on the graph below, which is for Blue Smooth Yoga Mats Ltd. one of50 small firms operating in the industry.Price, costs90157560604530150DMRACMC125 250 375 500 625 750 875 1000 1251250Quantity per perioda. What is the profit-maximizing output?Output:b. What price will the firm charge?Price: $c. How much excess capacity exists at the output in (a)?Excess capacity:

Explanation to above solutions: a. Profit-Maximizing Output is 500 unitsThe profit-maximizing output…

Answered: Answer the following question based on…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 11E

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