Answer on Economics of Enterprise Question for michelle corbett
2) MC = change in TC/change in Q. One additional watch needs additional (8/2)/1 = 4 dollars of the marginal cost.
3) The price can vary between 22 and 28 dollars per watch. A profit maximizer is in the point, where MR = MC = P, so the best price is 22 with the max output of 120k.
4) The production capacity is fully utilized.
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