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Answer to Question #8857 in Microeconomics for Shaminee
Question #8857
Assume that lee seafood restaurant faces the following cost schedule
Quantity Total cost
0 RM25
1 RM35
2 RM50
3 RM70
4 RM95
5 RM125
6 RM160
7 RM200
Lee seafood restaurant is a perfectly competitive firm. If the market price of seafood is RM28 per dish, how many will lee produce?
Quantity Total cost
0 RM25
1 RM35
2 RM50
3 RM70
4 RM95
5 RM125
6 RM160
7 RM200
Lee seafood restaurant is a perfectly competitive firm. If the market price of seafood is RM28 per dish, how many will lee produce?
Expert's answer
Lee will produce 4 dishes, if it maximizes profit.
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