ECON 157 Study Guide - Midterm Guide: Budget Constraint, Capital Good, Marginal Cost
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What is Bill's economic profit at the profit-maximizing output level?
Quantity |
Total cost |
Marginal cost | Price | Total revenue | Marginal revenue |
0 | 0 | 80 | |||
1 | 50 | 80 | |||
2 | 102 | 80 | |||
3 | 157 | 80 | |||
4 | 217 | 80 | |||
5 | 285 | 80 | |||
6 | 365 | 80 | |||
7 | 462 | 80 |
Table 14-12.
COSTS |
REVENUES |
|||||
Quantity |
Total |
Marginal |
Quantity |
|
Total |
Marginal |
0 |
$0 |
-- |
0 |
$80 |
-- |
|
1 |
$50 |
1 |
$80 |
|||
2 |
$102 |
2 |
$80 |
|||
3 |
$157 |
3 |
$80 |
|||
4 |
$217 |
4 |
$80 |
|||
5 |
$285 |
5 |
$80 |
|||
6 |
$365 |
6 |
$80 |
|||
7 |
$462 |
7 |
$80 |
|||
8 |
$582 |
8 |
$80 |
Refer to Table 14-12. At what quantity does Bill maximize profits?
a. 7
b. 8
c. 3
d. 6