How can I answer H and I with the information given? In the above table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20.### Table of Costs for Firm A and Firm B#### Firm A| Quantity | Fixed Cost | Total Variable Cost | Marginal Cost | Average Variable Cost | Average Total Cost ||----------|-------------|----------------------|---------------|------------------------|--------------------|| 1 | $20 | $4 | 4 | 4 | 24 || 2 | $20 | $30 | 6 | 15 | 25 || 3 | $20 | $38 | 8 | 12.67 | 19.33 || 4 | $20 | $48 | 10 | 12 | 17 || 5 | $20 | $62 | 14 | 12.40 | 16.40 || 6 | $20 | $82 | 20 | 13.67 | 17.67 || 7 | $20 | $110 | 28 | 15.71 | 18.57 |#### Firm B| Quantity | Fixed Cost | Total Variable Cost | Marginal Cost | Average Variable Cost | Average Total Cost ||----------|-------------|----------------------|---------------|------------------------|--------------------|| 1 | $20 | $8 | 8 | 8 | 28 || 2 | $20 | $20 | 8 | 10 | 18 || 3 | $20 | $24 | 4 | 8 | 12 || 4 | $20 | $30 | 6 | 7.50 | 12.50 || 5 | $20 | $38 | 8 | 7.60 | 11.60 || 6 | $20 | $56 | 18 | 9.33 | 12.33 || 7 | $20 | $86 | 30 | 12.

A price taker is firm, business or company that cannot influence the P(price) the services and…

Firm A Firm B Quantity Fixed Cost Total Marginal Quantity Average Variable Average Total Fixed Cost Total Marginal Cost Average Variable Average Variable Cost Variable Total Cost Cost Cost Cost Cost Cost 1 $20 $24 24 44 $20 $8 8 28 2 20 30 15 25 2 20 10 2 5 15 3 20 38 12.67 19.33 3 20 16 6. 5.33 13 4 20 48 10 12 17 4 20 24 6 11 5 20 62 14 12.40 16.40 20 36 12 7.20 11.20 6 20 82 20 13.67 17 6. 20 56 20 9.33 12.67 7 20 110 28 15.71 18.57 7 20 86 50 12.29 15.14 In the above table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20. A. Complete the table B. What is the lowest price at which firm A will produce ? $12 c. How many units of output will firm A produce at that price? D. What is the lowest price at which firm B will produce? $5 E. How many units of output will firm B produce at that price F. How many units ill Firm A produce if the market price is $20 G. How many units will firm B produce at the $20 price? 6 H. At the price of $20 which firm would earn a higher net profit or incur a smaller loss? I. How much is that net profit or loss?

Firm A Firm B Quantity Fixed Cost Total Marginal Quantity Average Variable Average Total Fixed Cost Total Marginal Cost Average Variable Average Variable Cost Variable Total Cost Cost Cost Cost Cost Cost 1 $20 $24 24 44 $20 $8 8 28 2 20 30 15 25 2 20 10 2 5 15 3 20 38 12.67 19.33 3 20 16 6. 5.33 13 4 20 48 10 12 17 4 20 24 6 11 5 20 62 14 12.40 16.40 20 36 12 7.20 11.20 6 20 82 20 13.67 17 6. 20 56 20 9.33 12.67 7 20 110 28 15.71 18.57 7 20 86 50 12.29 15.14 In the above table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20. A. Complete the table B. What is the lowest price at which firm A will produce ? $12 c. How many units of output will firm A produce at that price? D. What is the lowest price at which firm B will produce? $5 E. How many units of output will firm B produce at that price F. How many units ill Firm A produce if the market price is $20 G. How many units will firm B produce at the $20 price? 6 H. At the price of $20 which firm would earn a higher net profit or incur a smaller loss? I. How much is that net profit or loss?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How can I answer H and I with the information given?

In the above table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20.

### Table of Costs for Firm A and Firm B

#### Firm A
| Quantity | Fixed Cost | Total Variable Cost | Marginal Cost | Average Variable Cost | Average Total Cost |
|----------|-------------|----------------------|---------------|------------------------|--------------------|
| 1 | $20 | $4 | 4 | 4 | 24 |
| 2 | $20 | $30 | 6 | 15 | 25 |
| 3 | $20 | $38 | 8 | 12.67 | 19.33 |
| 4 | $20 | $48 | 10 | 12 | 17 |
| 5 | $20 | $62 | 14 | 12.40 | 16.40 |
| 6 | $20 | $82 | 20 | 13.67 | 17.67 |
| 7 | $20 | $110 | 28 | 15.71 | 18.57 |

#### Firm B
| Quantity | Fixed Cost | Total Variable Cost | Marginal Cost | Average Variable Cost | Average Total Cost |
|----------|-------------|----------------------|---------------|------------------------|--------------------|
| 1 | $20 | $8 | 8 | 8 | 28 |
| 2 | $20 | $20 | 8 | 10 | 18 |
| 3 | $20 | $24 | 4 | 8 | 12 |
| 4 | $20 | $30 | 6 | 7.50 | 12.50 |
| 5 | $20 | $38 | 8 | 7.60 | 11.60 |
| 6 | $20 | $56 | 18 | 9.33 | 12.33 |
| 7 | $20 | $86 | 30 | 12.

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