Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 11, Problem 11.1P
a)
To determine
To find: Area of land J should cut to maximize profit.
a)
Expert Solution
Explanation of Solution
Given:
Total cost:
Here,
Area of land J should cut to maximize its profit:
b)
To determine
J’s minimum daily profit.
b)
Expert Solution
Explanation of Solution
Here,
Therefore,
And total cost is:
Therefore,
c)
To determine
To draw: J’s supply curve.
c)
Expert Solution
Explanation of Solution
J is a price taker, so J’s supply curve will be equal to its marginal cost curve.
Therefore,
Graph 1
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QUESTION 6
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Chapter 11 Solutions
Microeconomic Theory
Knowledge Booster
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