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I have an economics question that states the following; 4. Optimization: Marginal Analysis- Quantity Determination, Profit Maximization Given the following information, please state your suggestions:
I have an economics question that states the following;
4. Optimization: Marginal Analysis- Quantity Determination, Profit Maximization Given the following information, please state your suggestions: 25% Price 78 76 72 60 50 42 40 Quantity Total Revenue 10 11 12 13 14 15 16 Total Cost 210 180 160 148 138 140 152 180 210 246 285 330 378 428 482 a. What will be the quantity that you will suggest to produce for reaching the optimization point (in resource allocation)? Please specify your decision rule and present the number to support your decision (Must show your calculation steps and explain) (10%) b. Please draw a figures/graphs to show your TC, TR, MR. MC and explain how you determine your optimal quantity to produce the output based on your graph)- (10%). c. What will be the profit amount when the resource allocation decision is optimized (at what quantity or quantities)? (5%)
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