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Sunday, January 29, 2012

Exercises

12. Mr=0

13. Because at one unit there would be a 400 dollar difference between selling one unit and 0 units but from there it starts decreasing.

14. because once the firm has reached less than mr=0 then the mr would start to decrease and the firm would stop maximizing profit.

15. a. at a output of 5

b. 45 dollars

c. 4 output

d. 8 output

16.

17. This is because since the price does not get higher the output stays constant making the revenue stay constant, meaning there would be no change in MR

18. a. at 4 output

b. 815 dollar

c.

d. at 8

19.

20.

21.

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