Q P ATC
#of Shoe per shoe per Shoe
100,000 $100 $20
200,000 80 15
300,000 60 16.66
400,000 40 22.50
500,000 20 31
Question 1: Determine what quanity of the shoes Leon should produce, and what price he should charge, in order to maximize proofits
Question 2: What is Leon's maximum profit?
Prior to the production, the designer renegotiates his cotract with Leon. She willreceive a bonus of $100,000, payable when the shoes are produced. This payment was not part of the Leon's original cost calculations. How many shoes should Leon produce now?