Consider the following table of costs for the Winsome Widget Factory, which oper
ID: 1233276 • Letter: C
Question
Consider the following table of costs for the Winsome Widget Factory, which operates in a perfectly competitive market. The market price faced by this firm is $6.00 per widget.a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit
b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR, and Total Profit
Have done this step please look at the bottom and help me answer the questions
Output
0
10
20
30
40
50
60
70
80
90
100
Total Fixed Cost
100
100
100
100
100
100
100
100
100
100
100
Total Variable Cost
0
50
80
100
140
200
275
375
500
650
900
Total Cost
$100
150
180
200
240
300
375
475
600
750
1,000
Average Fixed Cost
n/a
10
5
3.33
2.5
2
1.67
1.43
1.25
1.11
1
Average Variable Cost
n/a
5
4
3.33
3.5
4
4.58
5.36
6.25
7.22
9
Average Total Cost
n/a
5
4
3.33
3.5
4
4.58
5.36
6.25
7.22
9
Marginal Cost
n/a
50
30
20
40
60
75
100
125
150
250
Total Revenue
0
60
120
180
240
300
360
420
480
540
600
Marginal Revenue
n/a
60
60
60
60
60
60
60
60
60
60
Total Profit
-100
-90
-60
-20
0
0
-15
-55
-120
-210
-400
T Fixed Cost
100
100
100
100
100
100
100
100
100
100
100
Variable cost
50
80
100
140
200
275
375
500
650
900
AFC
n/a
10
5
3.33
2.5
2
1.67
1.43
1.25
1.11
1
AVC
n/a
5
4
3.33
3.5
4
4.58
5.36
6.25
7.22
9
AVC
n/a
5
4
3.33
3.5
4
4.58
5.36
6.25
7.22
9
MC
n/a
50
30
20
40
60
75
100
125
150
250
TR
0
60
120
180
240
300
360
420
480
540
600
MR
n/a
60
60
60
60
60
60
60
60
60
60
TP
-100
-90
-60
-20
0
0
-15
-55
-120
-210
-400
Please ANSWER THE QUESTIONS BELOW THANK YOU
c. Determine the profit maximizing level of output. Explain how you arrived at that conclusion
d. What is the total profit at the profit maximizing level of output? How does that compare to profit at other levels of output?
e. What is the lowest price that Winsome Widgets will accept and continue to produce in the short run? Explain.
f. Is Winsome Widgets in long-run equilibrium? Explain
Formulas and calculations must be shown along with the final correct answer.
Explanation / Answer
c., the profit maximizing level is when P=MC at output of 50, MC=6. Hence, the firm will produce output of 50