The assumption that technological progress increases the efficiency of labor is called:
1 answer:
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Answer:
62.50 units
$3,866.25
Explanation:
The price function is:
Profit as a function of quantity (P(Q)) is given by:
The quantity for which the derivate of the profit function is zero is the profit maximizing quantity:
The profit-maximizing quantity is 62.50 units
The economic profit for this production volume is:
The firm earns a profit of $3,866.25.