Quantity | Average Fixed Cost | Average Variable Cost | Marginal Cost |
20 | $40 | $18 | $18 |
40 | 20 | 14 | 10 |
60 | 13.1 | 16 | 20 |
80 | 10 | 22 | 40 |
100 | 8 | 30 | 62 |
120 | 6.61 | 40 | 90 |
Refer to Table 12-4. If the market price is $45, the firm
• will earn a profit of $3,600.
• will suffer a loss of $200.
• will break even.
• will earn profit of $1,040.