How many cell-phone cases will the company produce to maximize profit?

52 Show more Table 2: The Total Product Schedule for a Cell-phone Case Company Labor(L) Output(Q) 0 0 1 521.2 2 1197.34 3 1943.50 4 2719.71 5 3496.43 6 4248.85 7 4954.85 8 5593.99 9 6147.06 10 6595.67 A company producing plastic cell-phone cases uses a $3000 blower a $5000 processor and $1000 worth of molds. The rent paid for their space in an industrial park is $1500 per production period. The cost of materials (resins and compounds) is $11.00 per unit. The cell phone case market is competitive with a market price of $35. Each unit of labor is paid $10000 per production period. The production technology is described by Table 2. 2(a). At what level of output does the ATC and AVC reach their minimum level? Does the MC curve pass through them at these quantities? 2(b). How many cell-phone cases will the company produce to maximize profit? What is the maximum level of profit? Show less

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