What are smittens weekly profits

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Reference no: EM133907750

Question: a. The market price of children's mittens is $6.00 per pair. How many pairs of children's mittens should Smitten produce per week to maximize its profits?

b. What is Smitten's average total cost at the profit-maximizing quantity of children's mittens?

c. What are Smitten's weekly profits if the market price is $6 per pair and the firm produces the profit-maximizing quantity of mittens?

d. What are Smitten's weekly profits if the market price is $5.50 per pair and the firm produces the profit-maximizing quantity of mittens?

e. At what price would Smitten earn a normal profit?

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market.

Smitten's Production Costs
Quantity (pairs of mittens)	MC (dollars)	ATC (dollars)
5	$1.60	$8.00
10	2.00	5.00
15	2.45	4.15
20	3.55	4.00
25	4.00	4.00
30	5.50	4.25
35	6.00	4.50
40	8.50	5.00

Reference no: EM133907750

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