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Sagot :
Geoffrey the owner of a profit-maximization competitive firm is wondering that 6000 units of output dane county mowing inc. is currently selling.
What is profit-maximization?
Profit maximization is a short- or long-term procedure that allows a company to choose the prices, levels of inputs, and levels of output that will produce the largest feasible overall profit (or just profit in short). Neoclassical economics, the current dominant approach to microeconomics, makes the assumption that the firm is a "rational agent" that seeks to maximize its total profit, which is the difference between its total revenue and its total cost (whether it is operating in a perfectly competitive market or not). Since the companies lack the trustworthy information required to establish costs at all levels of production, measuring total cost and total revenue is frequently impossible.
Calculation:
In case of perfect competition, profit maximising condition is:
P=MC
Here MC=$17
Hence P=17
and ATC=$13
Total cost (TC)= ATC*Q = 13Q
Hence profit is
TR(PQ)-TC= 24000
17Q-13Q= 24000= 4Q= 24000=> Q= 6000
To learn more about profit maximization, visit:
brainly.com/question/13464288
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