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Maximum profit

Q P ATC
#of Shoe per shoe per Shoe
100,000 $100 $20
200,000 80 15
300,000 60 16.66
400,000 40 22.50
500,000 20 31

a) determine what quanity of the shoes Leon should produce, and what price he should charge, in order to maximize proofits

b) what is Leon's maximum profit?

Prior to the production, the designer renegotiates his cotract with Leon. She willreceive a bonus of $100,000, payable when the shoes are produced. This payment was not part of the Leon's original cost calculations. How many shoes should Leon produce now?

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Q P ATC
#of Shoe per shoe per Shoe
100,000 $100 $20
200,000 ...

Solution Summary

This discusses the ways to maximize profit

$2.19