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02-08-2018
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Look at the table marginal analysis of sweatshirt production ii. the profit at the optimal quantity of sweatshirts is:

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pristina pristina

02-08-2018

Answer: The profit at the optimal quantity will be $16.

Explanation: The producer will choose a quantity where,

MC≤MR

This happens at the 4th unit of output. So 4 units will be the optimal quantity.

[tex] Profit= TB -TC
=$64 - $48
=$16 [/tex]

After the 4th unit profit starts falling. So, the producer will never choose to produce the 5th unit.

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