Total Marginal Average Average Variable Output Cost Total Cost Cost Cost $50 5 7
ID: 1137327 • Letter: T
Question
Total Marginal Average Average Variable Output Cost Total Cost Cost Cost $50 5 70 4 1400S 4.00 10 80 28.00 3.00 15 110 7.33 4.00 20 150 8S 7.50S 6.00 25 200 800 6.00 as a whole number. If you are entering any negative numbers be sure to include a negative sign 6 instruetions: Enter your in front of those numbers. a. If the price is $10, how much output will the firm supply? (Use the profit-maximization rule and ent 5-unit increment as shown in the table.) units b. How much profit or loss will it make? c. The firm will shut down if the price falls below which price? Less than $3Explanation / Answer
Answer
a)
25 units
The MC is the supply schedule and at MC=10, 25 units are supplied
b)
Profit=TR-TC
TR=P*Q=25*10=$250
TC=ATC*Q=8*25=$200
Profit=250-200=$50