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Question: Suppose that you can sell as much of a product (in integer units) as you like at $62 per unit. Your marginal cost (MC) for producing the qth unit is given by:
MC=6q
This means that each unit costs more to produce than the previous one (e.g., the first unit costs 6*1, the second unit (by itself) costs 6*2, etc.).
If fixed costs are $70, what is the optimal integer output level?
If fixed costs are $70, what is the profit at the optimal integer output level?
If fixed costs are $115, what is the optimal integer output level?
If fixed costs are $115, what is the profit at the optimal integer output level?
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