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    Maximum profit

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    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:41 pm ad1c9bdddf
    https://brainmass.com/economics/production/maximum-profit-64374

    Solution Preview

    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