Price Quantity Demanded
(per week) Marginal
Cost Total
Revenue Marginal
Revenue Fixed
Cost Total
Cost
$60 1 $50 $60 $60 $40 $90
55 2 20 110 50 40 110
50 3 24 150 40 40 134
45 4 29 180 30 40 163
40 5 35 200 20 40 198
35 6 45 210 10 40 243
According to this chart how do you answer the following questions
a. Assuming you are currently charging $55 per table set, what should you do if you want to maximize profits?
b. Given the demand and cost estimates, what price should you change if you want to maximize your weekly profit?What output should you produce? What is your weekly profit?
Answers