Question

Based on the following graph, what is the profit maximizing price to charge for the block? Block Pricing Price Price charged for a block of 10 units = $ MC - AC Demand Quantity $12 $100 $70 $10 $50

Answer 1

Here we need to find profit marimiting price for the block. So here in the graph. A=$12; B-2; c= 90. So AB= (2-2) =10. BEZ CD2 10. Be= (2-0)=2 So profit maximizing 19ье - wea of ABE T aren of BEDO 1 x AB*BE + ( BC XCD). - 1xlox 10 + (2x10). ? Sot 20. TO C70 So The price maximizing price to charge for the block 820 by ② we know diminishing marginal too he trains. is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally incross, while the amounts of all other factor of production Stay Constant au in amestion Hore, if we incresedour input of an additional unit of then marginal prosuct will be lower at the point Compare to the marginal product of the previous unit of input So, it's law of diminishing marginal re twins. So, & law of diminishing marginal retwas is a bea corect option. 6 Rudolph has on the option to work four houre of overtime on Saturdays which pay $63 per hour,

to intall to Kitchen and Rudolph can help & his neighbour Cabinels and the offers to pay Rudolph $ 300 for his het help Rudolith helps the neighbour, he will not be able to go to work on Saturday So, il pudolph'l worth economic profit if he helps nie meish hour install the cabinets - 1300 - 4 hours of over time on Saturday , $300 - 4x & 63. - 8300 - 1352 $48 So, $48 in the correct option. 1 In the Supply and demand grahh the equilibrium & dintis - ok worantity Here We Can See Supply and demand will intersect at point o where, nog gas. Coordinate of point =(3,3). So cauilibrium point quantity and price = 3 and 3. So, the option is a @ True is correct one