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Suppose Manuel runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt.

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microeconomics   microecon   Profit   Revenue   Profit-Maximization   
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✔ Recommended Answer
Answer #1
Q TC TR Profit MC MR
0 20 0 -20
1 35 20 -15 15 20
2 40 40 0 5 20
3 45 60 15 5 20
4 55 80 25 10 20
5 70 100 30 15 20
6 95 120 25 25 20
7 125 140 15 30 20

200 T 175 t Total Revenue 150 t Tota Cost Profit ш125 100 75 t 25 25 QUANTITY (Shirts)

40 T 35 Marginal Revenue 30 25 Marginal Cost 20 C 15 CD 10 4 QUANTITY (Shirts)

Blanks:

1) 5

2) 15

3) Less

4) 25

5) More

6) MC=MR

7) P=MC

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