Can someone please help me, I can not figure out how to get thesse answers. Ques
ID: 1095039 • Letter: C
Question
Can someone please help me, I can not figure out how to get thesse answers.
Questions #7 and 8 correspond with information in the table. This table describes the output and various cost amounts for one perfectly competitive firm.
Output
Total Cost
Marginal Cost
Average Variable Cost
0
60.0
-
-
1
84.8
4.6
4.8
2
89.3
4.3
4.6
3
93.5
4.1
4.5
4
97.4
3.9
4.4
5
101.3
3.8
4.3
6
105.0
3.7
4.2
7
108.6
3.6
4.1
8
112.3
3.7
4.04
9
116.1
3.8
4.01
10
120.0
4.0
4.0
11
124.1
4.2
4.01
12
128.5
4.5
4.04
13
133.2
4.9
4.1
14
138.2
5.3
4.2
15
143.8
5.8
4.3
16
149.8
6.3
4.4
17
156.3
6.9
4.5
18
163.5
7.5
4.6
19
171.4
8.2
4.8
20
180.0
9.0
5.0
21
189.4
9.8
5.2
22
199.7
10.7
5.4
23
210.9
11.7
5.7
24
223.0
12.7
6.0
25
236.3
13.8
6.3
Note: The values in each (cost) column were rounded off to the nearest single decimal point
Output
Total Cost
Marginal Cost
Average Variable Cost
0
60.0
-
-
1
84.8
4.6
4.8
2
89.3
4.3
4.6
3
93.5
4.1
4.5
4
97.4
3.9
4.4
5
101.3
3.8
4.3
6
105.0
3.7
4.2
7
108.6
3.6
4.1
8
112.3
3.7
4.04
9
116.1
3.8
4.01
10
120.0
4.0
4.0
11
124.1
4.2
4.01
12
128.5
4.5
4.04
13
133.2
4.9
4.1
14
138.2
5.3
4.2
15
143.8
5.8
4.3
16
149.8
6.3
4.4
17
156.3
6.9
4.5
18
163.5
7.5
4.6
19
171.4
8.2
4.8
20
180.0
9.0
5.0
21
189.4
9.8
5.2
22
199.7
10.7
5.4
23
210.9
11.7
5.7
24
223.0
12.7
6.0
25
236.3
13.8
6.3
Explanation / Answer
In perfectly competitive market price=Marginal cost.
Total revenue=Price*Quantity-Total cost
1) When quantity is 15, the marginal cost =price =5.8
Profit =5.8*15-143.8= -56.8
2) When price is 4.9, quantity is 13.
Profit =4.9*13-133.2
Loss=69.5
3) When price is 6.3, quantity is 16.
Profit =4.9*13-149.8
Loss=49
4) When price is 9.8, quantity is 21
profit=9.8*21-189.4
Profit=$16.4
Quation 8
If price is 8.2, quantity sold is 19.
Profit=8.2*19-171.4=-15.6
Loss=15.6
This will result in either contract or exit of firms. The answer is c.