Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs are £10, and she is capable of producing up to 6 shawls per week. (8%) Use that information to fill in the table Quantit y Total Revenu e Fixed Cost Variable Cost Total Cost Profit= Revenue – Total Cost Marginal Revenue Margina l Cost 0 0 10 --- --- 1 18 8 2 12 3 18 4 27 5 39 6 52 What quantity of shawls should Emma produce in order to maximize her profit? At the profit-maximizing level of output, how do marginal revenue and marginal cost compare?

Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs are £10, and she is capable of producing up to 6 shawls per week. (8%) Use that information to fill...

Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs are £10, and she is capable of producing up to 6 shawls per week. (8%)

At the profit-maximizing level of output, how do marginal revenue and marginal cost compare?

Jun 10, 2022