Question
Suppose that you can sell as much of a product (in integer units) as you like at $46 per unit. Your marginal cost (MC) for
Suppose that you can sell as much of a product (in integer units) as you like at $46 per unit. Your marginal cost (MC) for producing the qth unit is given by:
MC = 7q
This means that each unit costs more to produce than the previous one (e.g., the first unit costs 7*1, the second unit (by itself) costs 7*2, etc.).
QUESTION
1. If fixed costs are $70, what is the optimal integer output level?
Please specify your answer as an integer.
1b. if costs are $70 what is the profit at the optimal integer output level?
Please specify your answer as an integer.
1c. If fixed costs are $95 , what is the optimal integer output level?
Please specify your answer as an integer
1d. If costs are $95 what it the profit at the optimal integer output level?
Please specify your answer as an integer
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