Practice problem 10A
You can sell as much of any product you want at $82. Your TCE (Total cost Equation)
is: TC = 196 +20 + 40
a) What are your fixed costs?
b) What is the profit maximizing level of output?
c) How much profit is the firm making at the profit-maximizing level?
d) Select true or false for following problem: in this situation, the profit-maximizing level
of output is also the level of output that minimizes average cost.
