Question
Need help solving question B
tion 10 of12 Decision Making by Individuals and Firms -End of Chapter Problem 10. Assume De Beers is the sole producer of diamonds. When it wants to sell more diamonds, it must lower its price in order to induce shoppers to buy more. Furthermore, each additional diamond that is produced costs more than the previous one due to the difficulty of mining for diamonds. De Beerss total benefit schedule is given in the accompanying table, along with its total cost schedule Quantity of diamonds Total benefit 1,100 1,900 2,700 3,400 4,000 4,500 4,900 5,200 Total cost $O 50 100 200 400 800 1,500 2,500 3,800 a. What is the optimal quantity of diamonds to produce? Optimal output: 5 diamonds b. Calculate the total profit to De Beers from producing each quantity of diamonds. Which quantity gives De Beers Profit-maximizing output the highest total profit? diamonds
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Need help solving question B tion 10 of12 Decision Making by Individuals and Firms -End of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Decision Making by Individuals and Firms End of Chapter Problem 10. Assume De Beers is the...

    Decision Making by Individuals and Firms End of Chapter Problem 10. Assume De Beers is the sole producer of diamonds. When it wants to sell more diamonds, it must lower its price in order to induce shoppers to buy more. Furthermore, each additional diamond that is produced costs more than the previous one due to the difficulty of mining for diamonds. De Beers's total benefit schedule is given in the accompanying table, along with its total cost schedule. Quantity of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT