Marginal, Average and Total Cost
Rosy's chicken wings is a price taker. The costs are:
|
Output |
Cost |
|
0 |
16 |
|
1 |
40 |
|
2 |
50 |
|
3 |
63 |
|
4 |
92 |
|
5 |
130 |
a) What is Rosy's profit-maximizing output?
b) How much economic profit does Rosy make if the market price per dozen chicken wings is (i)$28 (ii) S21
c) At what price would the chicken wings outlet shut down?
d) At what price would the outlet exit the industry?
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