Question

Sally Smith isaworld-mos ari who carvea axquisis models of birds out of rare, expensive woods. Saly knows that if sbe carves oaly 1 bird per moeth, her customers will pay a high price for it because of its rarity. f she makes more birds per month, people will only be willing to pay lower prices Mereover, when the carves more birda per month, her hands get very scre and she has to spend mon money having them masaged The table below lists the price Sally cas charge for different mumbers of birds sold per month and bar total costa of making different nombers of birds per month. Cakulate Sally's total revenue marginal evema, marginal cost and profit for each outpat level TC МС Prodt 0 1 $2000 700 2 1,300 1,100 3 1,600 1,700 4 1,400 2500 1,200 3300 1000 4700 b. Sally's profit la t its maxiom at an cutput lavel of e. Sally's marginal revemse equals ber marginal cost at n outpat lavel of d Os gaphacn the following pgs plot Sally's profit at each output level On graph b, plot Sally's margiaal cost and marginal revesa As yoa can see, profit is maximized at the oatpat level whare MR-MC(4 birda). brds) birk Saly's Pro Salys Mand HC 1s00 2000 3000 1500 200 1000 2000 1500 Quary 500 -500 1000 I 2 34 S Qany

Answer 1

Mc Profit ( 4 ) о Рукт мк soo 2ooo 2ooo ю о 20 оо 13 оо 36оо 20 0 чоо ryo 13 до доо лоо 1600 26 оо ч8 оо 1700 4 Јубо sъоо goo с Joo Зоо 4 ооо бо оо ч оо о -Nm sho 3600 Зоо доо со loo ооо 6 ооо 12оо Зоо 62 Profis is maa when o=4 birth c) M 9-ч, ме Me= 3о о Рэ d) me link a ооо Доо о ж 2oo° А 6, / ооо anc profit е 2 3 4 5 6