Question

UN enment Score: 61.8% Resources D ive Up Hint Check Answer ion 8 of 11 > Supply in a Competitive Market - End of Chapter Problem Anthony's Bees is an Internet e-tailer that sells equipment to aspiring beekeepers. A complete starter kit in this competitive market sells for $900. Anthony's total costs are given by TC = 3Q', where is the number of starter kits he sells each month. The corresponding marginal cost of producing beehives is MC =9Q a. What is Anthony's marginal revenue from selling another starter kit? MRES b. How many starter kits should Anthony sell each year in order to maximize his profits? Q= starter kits c. How much profit will Anthony earn at this output level? Profit = $ d. Suppose Anthony is producing the quantity indicated in part b. If he decides to produce one more starter kit, what will his new profit be? Profit = $ e. The marginal revenue of producing one more starter kit in part d is - than its marginal cost. MacBook Pro

Answer 1

re Competitive market price (p= $900] As s o; p = Marginal Revenue im.R) a) The Marginel revenue from selling another starter kit MR = $ 900 67 Total cost = 3d²; me = q d² . To maximize profita MR = MC Bold 90o= q 0² (100= ² [10=0] So, he should sell [d=107 starter kits e) A Profit (P-mela-900- Profit=PQ-34² = 900 (10)-3(1073 ΟΥ» ο fe d) so, the profit = $16000 of dall profit = Pa-34? = 900(1)-3(103 2 = 9900-3993 [profit= 5907] Profit= $15907