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Negative profit
Indicates higher profit at the higher output
- Question: Why is profit negative when the output is zero?
- Output levels: q0 - q*
Indicates higher profit at the higher output while Profit is increasing
- Output level: q*
-Why is profit reduced while producing more or less than q*?
- Output levels beyond q*
* Thus, it can be said:
- Profits can be maximized when MC = MR. : when maximized are Profits
why the production curve is bowed outwards
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P=140-4Q mc1=20+30q for plant 1 mc2=80+10q for plant 2 how many units should be produced by plant 1 and plant 2 to maximise profit for this monopoly?
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