Tammy sells woolen hats in a perfectly competitive market. The ...

[pragya sharda]

Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is 24. The marginal cost of producing a second hat is 26 and the marginal cost of producing a third hat is 28. The market price of a hat is 26.
 
  To maximize profit, Tammy produces ________ per day. A) 1 hat
  B) 3 hats
  C) 2 hats
  D) as many hats as possible

Question 2

In the above figure, the efficient quantity of magazines to produce per day is
 
  A) 0, because that is where the marginal social benefit exceeds the marginal social cost by as much as possible.
  B) more than 0 and less than 300,000 magazines.
  C) 300,000 magazines.
  D) more than 300,000 magazines.

[bobsmith]

Answer to Question 1

C

Answer to Question 2

C

[pragya sharda]

Thank you

[bobsmith]

Happy to help you