20T Fall. Online Microeconomics,202-301 Homework: Homework # 7 Score: 0 of 1 pt

Question

20T Fall. Online Microeconomics,202-301 Homework: Homework # 7 Score: 0 of 1 pt Checkpoint 2 Problem 1 HW Score: 62.5%, 15 of 24 pts Kali is a dot-com entrepreneur who has established a Web site at which people can design and buy abackpack Kali pays $100 a month for a Web server and Internet connection. The backpacks that customers design are made to order by another firm, and Kali pays this firm $10 a backpack. Kali has no other costs. Price The table shows the demand schedule for Kalil's backpacks. Kali's profittmaximizing output is backpacks a month Kali's profit-maximizing price is a backpack Enter your answer in the edit fields and then click Check Answer Clear All 1 part Copyright 2017 Pearson Education ch

Explanation / Answer

As per the above tabular data,

Profit maximizing output = 20 units of backpacks

Profit maximizing price = $30 per backpack

Profit earned at this level = Revenue – fixed cost – variable cost = 20*30 – 100 – 10*20

Profit earned at this level = $300

Price ($ per buyback) Quantity (per month) total Revenue = Price * quantity Marginal Revenue Fixed cost Total variable cost = Quantity * variable cost Total Cost = Fixed cost + variable cost Marginal cost Net Profit 50 0 0 100 0 100 -100 40 10 400 40 100 100 200 10 200 30 20 600 20 100 200 300 10 300 20 30 600 0 100 300 400 10 200 10 40 400 -20 100 400 500 10 -100 0 50 0 -40 100 500 600 10 -600

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.