Question
Suppose that you can sell as much of a product (in integer units) as you like at $68 per unit. Your marginal cost (MC) for
Suppose that you can sell as much of a product (in integer units) as you like at $68 per unit. Your marginal cost (MC) for producing the qth unit is given by:
MC=10q
This means that each unit costs more to produce than the previous one (e.g., the first unit costs 10*1, the second unit (by itself) costs 10*2, etc.).
1.If fixed costs are $60, what is the optimal integer output level?
Please specify your answer as an integer.
2.If fixed costs are $60, what is the profit at the optimal integer output level?
Please specify your answer as an integer.
3.If fixed costs are $95, what is the optimal integer output level?
Please specify your answer as an integer.
4.If fixed costs are $95, what is the profit at the optimal integer output level?
Please specify your answer as an integer.
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