(a) Use this information to set up a diagram showing the firm's total revenue and total cost schedules. In this diagram, show the points at which the firm is maximizing profits.
(b) Set up a separate diagram showing that the firm will be maximizing profits at the point where MC=MR. In this diagram, highlight the area representing the firm''s profits.
|
|
2014
|
2015
|
|
P
|
Q
|
P
|
Q
|
|
-lot Dogs
|
1
|
1000
|
2
|
800
|
|
Volleyballs
|
10
|
100
|
15
|
100
|
|
Shorts
|
20
|
100
|
10
|
200
|