Determine profit-maximizing output using the total approach


Problem

Suppose Spartan Orchards is one of over a thousand perfectly competitive apple growers in Canada. The following graph shows the market demand and supply curves.

In a properly labelled diagram, draw Spartan Orchard's demand curve for apples. What is the predominant feature of this individual perfectly competitive firm's demand curve?

a. If Carl sells each calculator for $19, determine profit-maximizing output using the total approach.

b. At the same market clearing price of $19, determine Carl's profit-maximizing output using the marginal approach. Use the four-step method and detail the steps.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine profit-maximizing output using the total approach
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