The table below shows the total costs faced by Faizah's Manufacturing Firm for different quantities of Good G sold. Quantity Total Cost 0 $64 1 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 2 3 4 5 6 7 8 9 10 Faizah's Manufacturing Firm sells Good G in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $32 per unit. (a) Calculate the average fixed cost of producing 8 units. Show your work. (b) Identify the profit-maximizing quantity. Explain using marginal analysis. (c) Calculate the economic profit at the profit-maximizing quantity you identified in part (b). Show your work.

The table below shows the total costs faced by Faizah's Manufacturing Firm for different quantities of Good G sold. Quantity Total Cost 0 $64 1 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 2 3 4 5 6 7 8 9 10 Faizah's Manufacturing Firm sells Good G in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $32 per unit. (a) Calculate the average fixed cost of producing 8 units. Show your work. (b) Identify the profit-maximizing quantity. Explain using marginal analysis. (c) Calculate the economic profit at the profit-maximizing quantity you identified in part (b). Show your work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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