Bags/ParticipantsFixed CostVariable CostTotal Cost$1,700$-$1,700100$1,700$500$2,200200$1,700इ1,200$2,900$1,700$2,700$4,400300$1,700$5,200$6,900400$1,700$9,000$10,700500$16,700$1,700$15,000600$1,700$23,800$25,500700$36,800$38,500$1,700800$55,800$57,500$1,700900$84,700$83,000$1,7001,000Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bagswill profits be maximized?Please select any/all correct answers:Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags.%3DO Using the profit-maximizing rule, MR 2 MC, the quantity of bags that will maximize profits is 200 bags.O Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize profits is 300 bags.O The break even quantity cannot be determined in this case.«< Question 2 of 9A Moving to another question will save this response.MacBook Air

Answered: Bags/Participants Fixed Cost Variable…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

100%

Bags/Participants
Fixed Cost
Variable Cost
Total Cost
$1,700
$-
$1,700
100
$1,700
$500
$2,200
200
$1,700
इ1,200
$2,900
$1,700
$2,700
$4,400
300
$1,700
$5,200
$6,900
400
$1,700
$9,000
$10,700
500
$16,700
$1,700
$15,000
600
$1,700
$23,800
$25,500
700
$36,800
$38,500
$1,700
800
$55,800
$57,500
$1,700
900
$84,700
$83,000
$1,700
1,000
Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags
will profits be maximized?
Please select any/all correct answers:
Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags.
%3D
O Using the profit-maximizing rule, MR 2 MC, the quantity of bags that will maximize profits is 200 bags.
O Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize profits is 300 bags.
O The break even quantity cannot be determined in this case.
«< Question 2 of 9
A Moving to another question will save this response.
MacBook Air

Expert Solution

Step 1

At breakeven point there is no profit or loss. At breakeven point, total revenue is equal to total cost.

A firm earns maximum profit by producing output at a level where MR = MC. MR refers to Marginal Revenue. MR is the additional revenue earned by producing an additional unit of output. MC refers to Mraginal Cost. Marginal Cost is the additional cost incurred while producing an additional unit of output.

MR = Change in Total Revenue / Change in Quantity

MC = Change in Total Cost / Change in Quantity

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions