Biology Forums - Study Force

Question 1.

Table 12-4

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

Table 12-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units.

Refer to Table 12-4. If the market price is $45 the firm will produce

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60 units.

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80 units.

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100 units

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120 units

Question 2.

Table 12-4

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

Table 12-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units.

Refer to Table 12-4. If the market price is $45, the firm

▸

will earn profit of $1,040.

▸

will suffer a loss of $200.

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earn a profit of $3,600.

▸

will break even.

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Appreciate the effort, thank you!