Total Total Total Average Short run Total Marg Profit Profit Q Cost Fixed Cost V
ID: 1099642 • Letter: T
Question
Total Total Total Average Short run Total Marg Profit Profit Q Cost Fixed Cost Var Cost Fixed Cost Var Cost Total Cost Mar Cost Revenue Revenue Per Unit profit Margin 0 5000 5000 0 $ - 0 0 100 10000 5000 5000 200 190000 5000 14000 300 27000 5000 22000 400 38000 5000 33000 82.5 110 $190.00 $38,000.00 $ 95.00 500 50000 5000 45000 600 66000 5000 61000 700 84000 5000 79000 800 104000 5000 99000 900 126000 5000 121000 1000 150000 5000 145000 * Demand and supply curve intersects at $190 per unit 1) To minimize ATC, the company would produce how many units? 2) To maximize profit margin, it should produce how many units? 3) What is the best level of output? Total Total Total Average Short run Total Marg Profit Profit Q Cost Fixed Cost Var Cost Fixed Cost Var Cost Total Cost Mar Cost Revenue Revenue Per Unit profit Margin 0 5000 5000 0 $ - 0 0 100 10000 5000 5000 200 190000 5000 14000 300 27000 5000 22000 400 38000 5000 33000 82.5 110 $190.00 $38,000.00 $ 95.00 500 50000 5000 45000 600 66000 5000 61000 700 84000 5000 79000 800 104000 5000 99000 900 126000 5000 121000 1000 150000 5000 145000 * Demand and supply curve intersects at $190 per unit 1) To minimize ATC, the company would produce how many units? 2) To maximize profit margin, it should produce how many units? 3) What is the best level of output?Explanation / Answer
1. To minimize ATC, the company would produce 300 units
2. To maximize profit margin, it should produce 300 units
3. For best level of output, profit = maximum. Output level = 700 units
Total Total Total Average Average Short run Total Marg Profit Profit Q Cost Fixed Cost Var Cost Fixed Cost Var Cost Total Cost Mar Cost Revenue Revenue Per Unit Margin Profit 0 5000 5000 0 0 $ - 0 0 100 10000 5000 5000 50.00 50.00 100 50.00 19,000.00 190.00 90.00 47.368% 9,000.00 200 19000 5000 14000 25.00 70.00 95 90.00 38,000.00 190.00 95.00 50.000% 19,000.00 300 27000 5000 22000 16.67 73.33 90 80.00 57,000.00 190.00 100.00 52.632% 30,000.00 400 38000 5000 33000 12.50 82.50 95 110.00 76,000.00 190.00 95.00 50.000% 38,000.00 500 50000 5000 45000 10.00 90.00 100 120.00 95,000.00 190.00 90.00 47.368% 45,000.00 600 66000 5000 61000 8.33 101.67 110 160.00 114,000.00 190.00 80.00 42.105% 48,000.00 700 84000 5000 79000 7.14 112.86 120 180.00 133,000.00 190.00 70.00 36.842% 49,000.00 800 104000 5000 99000 6.25 123.75 130 200.00 152,000.00 190.00 60.00 31.579% 48,000.00 900 126000 5000 121000 5.56 134.44 140 220.00 171,000.00 190.00 50.00 26.316% 45,000.00 1000 150000 5000 145000 5.00 145.00 150 240.00 190,000.00 190.00 40.00 21.053% 40,000.00