contestada

Suppose Kyoko runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $20 per frying pan.

Respuesta :

It should be noted that Kyoko's profit is maximized when she produces 6 frying pans.

How to illustrate the information?

When the profit is maximized, the marginal cost of the last frying pan she produces is $15 which is less than the price that Kyoko receives for each frying pan she sells.

The marginal cost of producing an additional frying pan is $25, which is greater than the price Kyoko receives for each frying pan she sells.

Therefore, in this case, Kyoko's profit maximizing quantity corresponds to intersection of both the marginal cost and marginal revenue curves.

Learn more about profit on:

https://brainly.com/question/1078746

#SPJ1

Ver imagen topeadeniran2