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Dictionary.con l Fin Transition e The College Board Words a TYwLS Physics Google Docs a Classes of New York (CUNY), Lehman College ECO 167- Microeconomics-Winter18-DELACRUZ > Activities and Due Dates Ch. o 1/19/2018 11:59 PM 557 0 1/11/2018 1133 PM 3 Gradebook Question 9 of 15 incorredt Sapling Learning Map Uncle Tyler\'s Fam has costs and revenue as seen in the graph below. Undle Tyler knows how well youtve been doing in your economics course and has asked for your help in determining how to make as much profit as possible. What is Uncle Tyler\'s profit-maximizing output? 10 Number What price will Uncle Tyler receive per unit at the profit maximizing level of Marginal Cost Number Average Total Cost Asmn he madmizes his profn, how much profit will Uncle Tyler earn? Number Toos Quantity 0Previous Give Up & View SoldonCheck AnswerNex.1 Ext Mcro.Lehman-W18 (1).docx ·

Solution

Answer 1. 7 units

Explanation: Profit is maximized when Marginal Revenue (MR) is equal to Marginal Cost (MC). In this case, MR = MC when the level of output is 7 units.

Answer 2. $3

Explanation: The price is the same (which is $3) irrespective of the output level of uncle Tyler.

Answer 3. $14.

Explanation: Profit = Total Revenue - Total Cost = (Price * Output) - (Average Total Cost * Output) = ($3 * 7) - ($1* 7) = $21 - $7 = $14. Note that ATC = $1 when output is 7 units.