Suppose a firm has the following costs:
Output (units): 10 11 12 13 14 15 16 17 18 19
Total Cost: $50 $52 $56 $62 $70 $80 $92 $106 $122 $140
(a) If the prevailing market price is $12 per unit, how much should the firm produce?
(b) How much profit will it earn at that output rate?
(c) If the market price dropped to $8, how much should this firm produce?
(d) How much profit will it make at that lower price?