For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output on the graph. Cost Curves 3.50 Tools 3.25 3.00 Select lect 2.75 Select nces 2.50 225 2.00 1.75 81.50 & 1.25 1.00 0.75 0.50 0.25 100 200 300 400 S00 600 700 800 900 Quantity (alices/day) At the profit maximizing level of output, the producer's profit is $ per day
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output on the graph. Cost Curves 3.50 Tools 3.25 3.00 Select lect 2.75 Select nces 2.50 225 2.00 1.75 81.50 & 1.25 1.00 0.75 0.50 0.25 100 200 300 400 S00 600 700 800 900 Quantity (alices/day) At the profit maximizing level of output, the producer's profit is $ per day
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 37CTQ: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,...
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