{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECON201 Mc-hill assignment 7 answers - 1 A price-taking...

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. A price-taking firm makes air conditioners. The market price of one of their new air conditioners is \$120. Its total cost information is given in the table below: How many air conditioners should the firm produce per day if its goal is to maximize its profit? conditioners per day Explanation: The marginal cost of each of the first 6 air conditioners produced each day is less than \$120, but the marginal cost of the 7 th air conditioner is \$140. So the company should produce 6 air conditioners per day. Air Conditioners/day Total Cost (\$/day) Marginal cost (\$/day) 1 100 100 2 150 50 3 220 70 4 310 90 5 405 95 6 510 105...
View Full Document

{[ snackBarMessage ]}

Page1 / 5

ECON201 Mc-hill assignment 7 answers - 1 A price-taking...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online