figure8-2 - Figure 8 .2 ( a ) 1. In Figure (a), we can find...

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Figure 8.2(a) 56 a, Quantity, 456 Quantity, Flgure 8.2(c) 1456 Quantity 8" If the firm sells Q=6, then revenue is the alea ot thc trluc rcctanglc" PxQ = 6x$41 8216, as is also slrou,n in (b). 1. In Figure (a), we can find tlre tirm's profit rnaximizing quanlity without looking a[ the revenue ancl cost curves. l. By comparing tlre rcvcnuc and cosl curvcs in (b), we can calculate the firrn's protit tbr each possible value of Q. 'Ihese profi.ts are graplred in (c). $70 $50 $20 $-lo $120 $80 lo o I Figure 8.2(b) I23 7 '7. If'the firm sells lhen Lhe AC cru-ve shows that thc arvcragc cos[ pcr unit is $25. 5. If the firm produces, then its protit-mariimizing quantig is tbe higlrest quanlity for which MR>"MC. lJreretbre, the lirm
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This note was uploaded on 01/31/2009 for the course ECON 200 taught by Professor Cramer during the Spring '07 term at University of Arizona- Tucson.

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