Economics 11
Profit is maximized when the quantity produced makes the marginal cost equal to marginal revenue. The profit-maximizing output is 5.5 pounds. d. Dolly’s profit-maximizing price is $2,100 a pound. The profit-maximizing price is the highest price that Dolly’s can sell the profit-maximizing output of 5.5 pounds. Dolly’s can sell 5 pounds for $2,200 and 6 pounds for $2,000, so it can sell 5 ... ................
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