Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. How much is the firm making in profit? $ If the goal of your business is to maximize profit, what will your long term strategy be? The business will produce 30 units, and charge a price of $6. Price ($) 10 9 8 7 6 5 4 3 2 1 0- 0 10 20 30 E MR 40 50 Quantity 60 MC 70 80 ATC D 90 100

Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. How much is the firm making in profit? $ If the goal of your business is to maximize profit, what will your long term strategy be? The business will produce 30 units, and charge a price of $6. Price ($) 10 9 8 7 6 5 4 3 2 1 0- 0 10 20 30 E MR 40 50 Quantity 60 MC 70 80 ATC D 90 100

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 11E

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