Average Marginal Quantity Total Cost Total Cost Cost 0 $10.00 1 15.00 $15.00 $5.00 2 17.50 8.75 2.50 3 22.50 7.50 5.00 4 30.00 7.50 7.50 5 40.00 8.00 10.00 6 52.50 8.75 12.50 7 67.50 9.64 15.00 8 85.00 10.63 17.50 9 105.00 11.67 20.00 Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q), total cost (TC), average total cost (ATC) and marginal cost (MC). Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00? O Q = 0; profit = -$10.00 O Q = 1; profit = -$10 O Q = 3; profit = -$7.50 O Price and profit cannot be determined from the information given.

Average Marginal Quantity Total Cost Total Cost Cost 0 $10.00 1 15.00 $15.00 $5.00 2 17.50 8.75 2.50 3 22.50 7.50 5.00 4 30.00 7.50 7.50 5 40.00 8.00 10.00 6 52.50 8.75 12.50 7 67.50 9.64 15.00 8 85.00 10.63 17.50 9 105.00 11.67 20.00 Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q), total cost (TC), average total cost (ATC) and marginal cost (MC). Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00? O Q = 0; profit = -$10.00 O Q = 1; profit = -$10 O Q = 3; profit = -$7.50 O Price and profit cannot be determined from the information given.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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