Question

09392693&snapshotid=1460282& CENGAGE MINDTAP Perfect Competition : Aplla Homework Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 3. Profit maximization with a cost table Aa Aa Suppose Clancy runs a small business that manufactures frying pans. Assume that the market for frying pans is a perfectly competitive market and the market price is $25 per pan. The following table represents Clancy's cost structure per hour: Output (Pans per hour) Total Cost (Dollars per hour) UAWNO , and his profit would be , and his marginal If Clancy produces and sells two frying pans, his total revenue (TR) would be Clancy's marginal revenue (MR) from the second frying pan he sells is cost (MC) of producing a second pan is |

Answer 1

Output Total Cast 40 50 80 100 13 0 Price =25 Clancy produce a pans = Q = 2 Total Revenue (TR) 2 PXQ 25x2 = 450 $50 At Q=2 Total cort - 50 Profil - Total Revenue- Total cort 2 50 - 50 Z Profil = 0 [Because price is fixed Harginal Revenue Price Marginal Revenue = $25 Marginal Cart = Total Cast of Preduction 1 cart of reduction of Q 22 Total Cart Production 7 Oct : 50 - 40 Marginal Cart - $10 Scanned with CamScanner