Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demandcurve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the followingquestion accordingly .Price QuantityTC$25.00$100$24.00 10$250$23.00 20$420$22.00 30$600$21.00 40$780$20.00 50$970$19.00 60$1,170In order to maximize profit, the above firm should produce where:Select one:a. Marginal Revenue = Marginal Costb. Price= Average Total CostC. Price = Marginal Costd. Economic profit= zero

Answered: In order to maximize profit, the above…

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Economics

In order to maximize profit, the above firm should produce where:

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 19P: Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to...

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Question

Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand
curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the following
question accordingly .
Price QuantityTC
$25.00
$100
$24.00 10
$250
$23.00 20
$420
$22.00 30
$600
$21.00 40
$780
$20.00 50
$970
$19.00 60
$1,170
In order to maximize profit, the above firm should produce where:
Select one:
a. Marginal Revenue = Marginal Cost
b. Price= Average Total Cost
C. Price = Marginal Cost
d. Economic profit= zero

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Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the following question accordingly. Price QuantityTC $25.00 $100 $24.00 10 $250 $23.00 20 $420 $22.00 30 $600 $21.00 40 $780 $20.00 50 $970 $19.00 60 $1,170 Total revenue of producing 30 units of output from the above table is: Select one: a. $180 b. $435 c. $600 d. $660
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19. Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? Price Quantity TC $25.00 $130 $24.00 10 $275 $23.00 20 $435 $22,50 30 $610 $22.00 40 $800 $21.60 50 $1,005 $21.20 60 $1,225 Table 10.5