Question
Optimization: Marginal Analysis-Quantity Determination, Profit Maximization Given the following information, please state your suggestions: Price 76 73 68 64 62 59 56 53 51 49
Optimization: Marginal Analysis-Quantity Determination, Profit Maximization
Given the following information, please state your suggestions:
Price
76
73
68
64
62
59
56
53
51
49
47
45
43
Quantity
1
2
3
4
5
6
7
8
9
10
11
12
13
Total Revenue (Not listed)
Total Cost
212
191
171
155
144
139
143
165
189
220
261
307
362
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 thenumber to support your decision (Must show your calculation steps and explain)
b. Please draw a figures/graphs to show your TC, TR, MR, M Cand explain how you determine your optimal quantity to produce the output based on your graph).
c. What will be the profit amount when the resource allocation decision is optimized (at what quantity or quantities)?
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