Homework answers / question archive / 1)Complete the following table:                      Total      Marginal        Average              Average Output         Cost           Cost          Total Cost         Variable Cost 0                   $100                                                               5                     110                                                            10                   130                                                            15                   170                                                         20                   220                                                         25                   290                                                         30                   380                                                       35                   490                                                       According to the table above, ( a ) If the price is $8, how much output will the firm supply? ( b ) How much profit or loss will it make? ( c ) At what price will the firm shut down?   2) A firm has leased plant and equipment to produce video game cartridges, which can be sold in unlimited quantities at $21 each

1)Complete the following table:                      Total      Marginal        Average              Average Output         Cost           Cost          Total Cost         Variable Cost 0                   $100                                                               5                     110                                                            10                   130                                                            15                   170                                                         20                   220                                                         25                   290                                                         30                   380                                                       35                   490                                                       According to the table above, ( a ) If the price is $8, how much output will the firm supply? ( b ) How much profit or loss will it make? ( c ) At what price will the firm shut down?   2) A firm has leased plant and equipment to produce video game cartridges, which can be sold in unlimited quantities at $21 each

Finance

Share With

---

1)Complete the following table:

                     Total      Marginal        Average              Average

Output         Cost           Cost          Total Cost         Variable Cost

0                   $100                                                              

5                     110                                                           

10                   130                                                           

15                   170                                                        

20                   220                                                        

25                   290                                                        

30                   380                                                      

35                   490                                                      

According to the table above,

( a ) If the price is $8, how much output will the firm supply?

( b ) How much profit or loss will it make?

( c ) At what price will the firm shut down?

 

2) A firm has leased plant and equipment to produce video game cartridges, which can be sold in

unlimited quantities at $21 each. The following figures describe the associated costs of production:

 

Rate of output (per day) 0 1 2 3 4 5 6 7 8

 

Total cost (per day) $50 $55 $62 $75 $96 $125 $162 $203 $248

 

( a ) How much are fixed costs?

 ( b ) Draw total revenue and cost curves on the graphs here.

 ( c ) Draw the average total cost (ATC), marginal cost (MC), and demand curves of the firm. ATC is:

 ( d ) What is the profit-maximizing rate of output?

 ( e ) Should the producer stay in business?

 ( f ) What is the size of the loss if production continues?

 ( g ) How much is lost if the firm shuts down?