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a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the firms output level? -  What is its profit (or loss)-per-unit at that output level?  $ -  What is its total profit? $  c. Now suppose the price of the product is $10. - What is the firm’s profit-maximizing output level? - What is the firm's profit or loss per-unit?   $  - What is the firm's total profit (or loss)?   $

a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the firms output level? -  What is its profit (or loss)-per-unit at that output level?  $ -  What is its total profit? $  c. Now suppose the price of the product is $10. - What is the firm’s profit-maximizing output level? - What is the firm's profit or loss per-unit?   $  - What is the firm's total profit (or loss)?   $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Using the table (Check if the values are correct), answer the questions below: 

a. What is the firms total fixed cost

b. Suppose the price of the product is 20

- What is the firms output level?

-  What is its profit (or loss)-per-unit at that output level?  $

-  What is its total profit? $ 

c. Now suppose the price of the product is $10.

- What is the firm’s profit-maximizing output level?

- What is the firm's profit or loss per-unit?   $ 

- What is the firm's total profit (or loss)?   $ 

d. At a price of $10, will the firm produce? 

e. If the price remains $10, what will happen to this firm in the long-run? 

 

Average Variable Average Total Cost Quantity Total Cost ($) Marginal Cost ($) Cost ($) ($) 20 1 22 2 2 22 2 27 3.50 13.50 9. 12 3 36 5.33 50 4 14 7.50 12.50 4 5 70 20 14 6 98 28 13 16.33 LO
Transcribed Image Text:Average Variable Average Total Cost Quantity Total Cost ($) Marginal Cost ($) Cost ($) ($) 20 1 22 2 2 22 2 27 3.50 13.50 9. 12 3 36 5.33 50 4 14 7.50 12.50 4 5 70 20 14 6 98 28 13 16.33 LO
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