A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 = $920 VC₂= variable costs from product 2 = $805 TR₁ revenue from product 1 = $900 TR₂= revenues from product 2 = $900 In the short run, what should the firm do? O Produce product 1 but not 2 O Produce product 2 but not 1 O Produce both O Produce neither

A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 = $920 VC₂= variable costs from product 2 = $805 TR₁ revenue from product 1 = $900 TR₂= revenues from product 2 = $900 In the short run, what should the firm do? O Produce product 1 but not 2 O Produce product 2 but not 1 O Produce both O Produce neither

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it produces one more unit, its total costs will increase to $10,150. a. What is the marginal cost of producing 101 instead of 100 units of output? b. What is the firm's average total cost of producing 100 units? c. What is the firm's average total cost of producing 101 units?
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