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Suppose that Katy sells egg rolls. The total cost of production, based on the number of egg rolls produced, is shown in the following table.
# of egg rolls
Number of egg rolls Total cost ($)
1 8
2 10
3 13
4 18
5 25
6 34
7 45
Suppose that the price is $6. Assuming profit maximization, how many egg rolls will Katy sell?

Respuesta :

kourt5475
Multiply the numbers is all make sense
  • Profit maximization is a process that companies go thru to ensure that have the best production or pricing layer gives to maximize profits.
  • The corporation adjusts influencing parameters including sale price, production cost, and output levels to meet its profit targets.

Rolls            TC        MC

1                   8             8

2                  10            2

3                  13            3

4                  18            5

5                  25           7

6                  34           9

7                  45            11

When

[tex]\bold{MC=TC}[/tex] at [tex]\bold{n}[/tex] units [tex]\bold{-TC}[/tex] at [tex]\bold{n-1}[/tex] units

So, the profit is maximum at [tex]\bold{MR=MC}[/tex]  

[tex]\to \bold{MR=6=P}[/tex]

at this [tex]\bold{Q=4}[/tex]

Therefore, Katy sells "4" egg rolls.

Note:

Please find the formula in the attached file.

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brainly.com/question/20191257

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