Basketball Production Cost Table Output per Day Total Cost Fixed Cost Variable Cost Average Total Cost Average Variable Cost Marginal Cost 0 $10.00 10 0 0 0 0 1 $15.00 10 5 15 5 5 2 $17.50 10 7.50 8.75 3.75 2.50 3 $22.50 10 12.50 7.50 4.17 5 4 $30.00 10 20 7.50 5 7.50 5 $40.00 10 30 8 6 10 6 $52.50 10 42.50 8.75 7.08 12.50 7 $67.50 10 57.50 9.64 8.21 15 8 $85.00 10 75 10.63 9.38 17.50 9 $105.00 10 95 11.67 10.56 20 If the market equilibrium price is $12.50, how many basketballs will Alfréd produce, what price will be charged, and how much profit or loss will occur? Answer these same questions if the market equilibrium price is $5.00. What prices represent the short-run shutdown and long-run entry/exit points?
Basketball Production Cost Table Output per Day Total Cost Fixed Cost Variable Cost Average Total Cost Average Variable Cost Marginal Cost 0 $10.00 10 0 0 0 0 1 $15.00 10 5 15 5 5 2 $17.50 10 7.50 8.75 3.75 2.50 3 $22.50 10 12.50 7.50 4.17 5 4 $30.00 10 20 7.50 5 7.50 5 $40.00 10 30 8 6 10 6 $52.50 10 42.50 8.75 7.08 12.50 7 $67.50 10 57.50 9.64 8.21 15 8 $85.00 10 75 10.63 9.38 17.50 9 $105.00 10 95 11.67 10.56 20 If the market equilibrium price is $12.50, how many basketballs will Alfréd produce, what price will be charged, and how much profit or loss will occur? Answer these same questions if the market equilibrium price is $5.00. What prices represent the short-run shutdown and long-run entry/exit points?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
|
Basketball Production Cost Table |
||||||
|
Output per Day |
Total Cost |
Fixed Cost |
Variable Cost |
Average Total Cost |
Average Variable Cost |
Marginal Cost |
|
0 |
$10.00 |
10 |
0 |
0 |
0 |
0 |
|
1 |
$15.00 |
10 |
5 |
15 |
5 |
5 |
|
2 |
$17.50 |
10 |
7.50 |
8.75 |
3.75 |
2.50 |
|
3 |
$22.50 |
10 |
12.50 |
7.50 |
4.17 |
5 |
|
4 |
$30.00 |
10 |
20 |
7.50 |
5 |
7.50 |
|
5 |
$40.00 |
10 |
30 |
8 |
6 |
10 |
|
6 |
$52.50 |
10 |
42.50 |
8.75 |
7.08 |
12.50 |
|
7 |
$67.50 |
10 |
57.50 |
9.64 |
8.21 |
15 |
|
8 |
$85.00 |
10 |
75 |
10.63 |
9.38 |
17.50 |
|
9 |
$105.00 |
10 |
95 |
11.67 |
10.56 |
20 |
- If the
market equilibrium price is $12.50, how many basketballs will Alfréd produce, what price will be charged, and how much profit or loss will occur? - Answer these same questions if the market equilibrium price is $5.00.
- What prices represent the short-run shutdown and long-run entry/exit points?
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