A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost of $100.00 and a variable cost of $15.00 per unit for the first 50 units and then $25.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units? Yes What is the average variable cost for the first 50 units? $ b. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ c. What is the marginal cost per unit for the first 50 units? $ per unit. What is the marginal cost for units 51 and higher? $ per unit.

A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost of $100.00 and a variable cost of $15.00 per unit for the first 50 units and then $25.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units? Yes What is the average variable cost for the first 50 units? $ b. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ c. What is the marginal cost per unit for the first 50 units? $ per unit. What is the marginal cost for units 51 and higher? $ per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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