Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost per quantity produced: Total Cost Fixed Cost Variable Cost Quantity (Q) (FC) (TC) TC-FC+VC (VC) 60 60 60 45 105 60 85 145 180 210 60 120 60 150 185 60 245 6. 60 225 285 60 60 7 270 330 385 450 525 325 60 390 10 60 405 The market dictates Hampton Inc. sells soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost per quantity produced: Total Cost Fixed Cost Variable Cost Quantity (Q) (FC) (TC) TC-FC+VC (VC) 60 60 60 45 105 60 85 145 180 210 60 120 60 150 185 60 245 6. 60 225 285 60 60 7 270 330 385 450 525 325 60 390 10 60 405 The market dictates Hampton Inc. sells soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**Hampton Inc. Cost Analysis in a Purely Competitive Industry**
Hampton Inc. produces soap in a purely competitive market. The table below details Hampton Inc.'s costs per quantity produced:
| Quantity (Q) | Fixed Cost (FC) | Variable Cost (VC) | Total Cost (TC = FC + VC) |
|--------------|----------------|--------------------|--------------------------|
| 0 | 60 | 0 | 60 |
| 1 | 60 | 45 | 105 |
| 2 | 60 | 85 | 145 |
| 3 | 60 | 120 | 180 |
| 4 | 60 | 150 | 210 |
| 5 | 60 | 180 | 240 |
| 6 | 60 | 225 | 285 |
| 7 | 60 | 270 | 330 |
| 8 | 60 | 325 | 385 |
| 9 | 60 | 395 | 455 |
**Market Price and Production Decision**
The market dictates Hampton Inc. sells its soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
*[Note: To determine the optimal quantity for production, consider where the marginal cost meets the market price, or explain relevant decision-making criteria based on the data provided.]*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc5e22e2-ae77-4fb2-8d33-e62049f815fe%2F6053179e-7c92-4673-9050-704daa31ec7f%2F63np0up_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Hampton Inc. Cost Analysis in a Purely Competitive Industry**
Hampton Inc. produces soap in a purely competitive market. The table below details Hampton Inc.'s costs per quantity produced:
| Quantity (Q) | Fixed Cost (FC) | Variable Cost (VC) | Total Cost (TC = FC + VC) |
|--------------|----------------|--------------------|--------------------------|
| 0 | 60 | 0 | 60 |
| 1 | 60 | 45 | 105 |
| 2 | 60 | 85 | 145 |
| 3 | 60 | 120 | 180 |
| 4 | 60 | 150 | 210 |
| 5 | 60 | 180 | 240 |
| 6 | 60 | 225 | 285 |
| 7 | 60 | 270 | 330 |
| 8 | 60 | 325 | 385 |
| 9 | 60 | 395 | 455 |
**Market Price and Production Decision**
The market dictates Hampton Inc. sells its soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
*[Note: To determine the optimal quantity for production, consider where the marginal cost meets the market price, or explain relevant decision-making criteria based on the data provided.]*
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