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Hpreet796 Hpreet796
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4 years ago

Question 1.

Table 12-4

QuantityAverage Fixed CostAverage Variable CostMarginal 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



▸

60 units.



▸

80 units.



▸

100 units



▸

120 units



Question 2.

Table 12-4

QuantityAverage Fixed CostAverage Variable CostMarginal 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.



▸

earn a profit of $3,600.



▸

will break even.

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InMicro

InMicro


Edition: 1st
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OmamaOmama
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Hpreet796 Author
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4 years ago
Appreciate the effort, thank you!
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