A Milton company is a clothing company, below is a table that shows the production and that costs of this company that works in competitive market in short run: Q P. TR MR TVC TC TF AVC АТС AFC MC 8 20 1 8. 12 15 23 3. 16 24 4 17.4 25.4 20 28 24 32 7 32 40 8. 56 64 a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output. d. Determine the shutdown price and calculate the profits/loss at this price. IS 2.
A Milton company is a clothing company, below is a table that shows the production and that costs of this company that works in competitive market in short run: Q P. TR MR TVC TC TF AVC АТС AFC MC 8 20 1 8. 12 15 23 3. 16 24 4 17.4 25.4 20 28 24 32 7 32 40 8. 56 64 a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output. d. Determine the shutdown price and calculate the profits/loss at this price. IS 2.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Abdulrahin Taysir
Transcribed Image Text:A Milton company is a clothing company, below is a table that shows the production and
that costs of this company that works in competitive market in short run:
TR
MR
TVC
TC
TF
AVC
АТС
AFC
MC
8
1
8.
12
20
23
24
15
3.
16
4
17.4
25.4
5.
20
28
32
6.
24
7
32
40
56
64
a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in
your calculations.
b. Show P, ATC,AVC,MC In the same graph
c. What is the output level that should this firm produce to maximize its profits?
calculate the amount of profits at this level of output.
d. Determine the shutdown price and calculate the profits/loss at this price.
TE
EN
021
ASUS
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