What is the fixed cost? fixed cost = dollars What is the maximum profit if each
ID: 3341897 • Letter: W
Question
What is the fixed cost?
fixed cost = dollars
What is the maximum profit if each item is sold for 10 dollars? (Assume you sell everything you produce.)
maximum profit = dollars
Suppose we fix production at 36 goods produced, and that they all sell when the price is 10 dollars each. Also suppose that for each 1 dollar increase in price, 2 fewer goods are sold (so if the price is 11 dollars, 34 of the 36 goods being produced are sold.)
To maximize profit in this case, we should ? decrease increase neither increase nor decrease the price by dollars.
(Enter zero if the price should remain at 10 dollars.)
Explanation / Answer
Suppose we fix production at 36 goods are produced,...
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