Question 23 A firm produces a product which it sells in a perfectly competitive market. The price of the product is R120 per unit and the firm's cost structure is given in the table below. Use the table below to answer the question Units Fixed cost Variable cost Total cost Average cost Marginal cost produced (Q) (FC) (VC) (TC) (AVC) (MC) 48 0 1 2 3456 100 564 216 88 How many units must the firm produce in order to maximise profits? a) 6 units b) 2 units c) 5 units d) 4 units 32 104
Question 23 A firm produces a product which it sells in a perfectly competitive market. The price of the product is R120 per unit and the firm's cost structure is given in the table below. Use the table below to answer the question Units Fixed cost Variable cost Total cost Average cost Marginal cost produced (Q) (FC) (VC) (TC) (AVC) (MC) 48 0 1 2 3456 100 564 216 88 How many units must the firm produce in order to maximise profits? a) 6 units b) 2 units c) 5 units d) 4 units 32 104
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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