90 145 10 170 13 Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? $ 46 c. If the price of ties falls to $13, how many ties should the firm produce? ties per day d. At what price should the firm shut down? Less than $7

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Chapter1: Making Economics Decisions
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Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs:
Quantity
(ties per day)
Total Cost
0
$10
1
17
2
26
3
37
4
50
5
65
6
82
7
101
8
122
9
145
10
170
Instructions: Enter your responses as a whole number.
a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.)
ties per day
b. How much profit does the firm earn at that rate of output?
46
c. If the price of ties falls to $13, how many ties should the firm produce?
ties per day
d. At what price should the firm shut down?
Less than $7
Transcribed Image Text:Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) Total Cost 0 $10 1 17 2 26 3 37 4 50 5 65 6 82 7 101 8 122 9 145 10 170 Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? 46 c. If the price of ties falls to $13, how many ties should the firm produce? ties per day d. At what price should the firm shut down? Less than $7
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