Suppose that you can sell as much of a product (in integer units) as you like at
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Question:
Suppose that you can sell as much of a product (in integer units) as you like at $60 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.).
- If fixed costs are $80, what is the optimal integer output level?
- If fixed costs are $80, what is the profit at the optimal integer output level?
- If fixed costs are $115, what is the optimal integer output level?
- If fixed costs are $115, what is the profit at the optimal integer output level?
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