Question 5 The graph below shows the cost curves for a monopolist What is the mo

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Question 5 The graph below shows the cost curves for a monopolist What is the moncpolist's profit at the profit-maximizing level of production Question 6 4 pts The adamional output produced by adding one more unit of an input is the averape product marginal product economic proft total production Question 7 4 pts Congratuations, you have just graduated from UNCW with a degree in economics You are considering two job options. The first option is to take a coesulting posution in New York City thuat pays 570.000 per year. The second option is to open a kayaking ?de b riness near ? semite National Park You estimate that i the first year. you kayaking ptte busine s would have evenues of $40.000 and costs of $20000 what would economic profit be r you dede to open the kayaking business? $30000 $50000 Question

Explanation / Answer

5. Ans : $32

Explanation :

Profit maximization level of production is where , MR = MC

So in the above figure , the profit maximization level of production is 4 units where price is $12.

At this level of production ;

Total Profit = Total Revenue - Total Cost

= ( Price per unit * Quantity of output ) - ( Average total cost * Quantity of output )

= ( $12 * 4 ) - ( $4 * 4)

= $48 - $ 16

= $32

6. Ans : Marginal Product

Explanation:

Marginal Product = Change in Total Product / Change in input

7. Ans :  - $50000

Total economic profit = Total revenue - Total Explicit cost - Total Implicit cost

= $40000 - $ 20000 - $ 70000

= - $50000

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