(i) What is the profit maximising level of output for this firm in the short-run? At
this quantity, what is the marginal revenue?
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The firm's marginal revenue is equal to the price of $10 per unit of total product. Notice that the marginal cost of the 29th unit produced is $10, while the marginal revenue from the 29th unit is also $10. Hence, the firm maximizes its profits by choosing to produce exactly 29 units of output.
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