Economics:
Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 22, Problem 15E
To determine

To explain:

Whether the delivery service firm will expand or not.

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Direction: Solve the problems on the space provided after each number. Show your solutions. You can submit using messenger or using your VLE account. Take a photo of your answers if using messenger to submit. If using VLE, encode your answers and send as file.    If profit is maximum at sales of 700 units, does the firm have no choice but to limit sales at this level? Explain your answer.       A business firm produces and sells a particular product. Variable cost is P30/unit. Selling price is P40 per unit. Fixed cost is P60,000. What is the break-even quantity and break-even point? Show your solution.         A manager makes the statement that output should be expanded as long as average revenue exceeds average cost. Does this strategy make sense? Explain.       Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be produced.   Output (Q) TFC TVC TC MC TR MR Profit/Loss 0 500 0…
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