If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.
If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Question
100%
![If the firm sells 5 units at a price of $30 each, then the
Quantity Cost
0
1
2
3
01
5
6
(in Costs
dollars) (in
0
Fixed Total Average
Costs
Total Costs
(in (in dollars
per unit)
35
60
dollars) dollars)
15 40 55
40 40
40 75 37.5
40 100
125 40 165
55
160 40 200
marginal unit produced
Average Variable
Costs (in dollars per
unit)
90 40 130 32.5 22.5
15
33.3
17.5
33.3 20
26.6
Marginal
Costs
(in dollars
per unit)
15
20
40
is subtracting from profits.
the purchase price is higher than the average
cost.
the purchase price is the same as the average
cost.
is adding to profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0dca65e3-5d84-435b-a40e-c7b10d92b1e9%2F7d2c7950-555e-4792-9892-30112de92f86%2Fe823v4f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the firm sells 5 units at a price of $30 each, then the
Quantity Cost
0
1
2
3
01
5
6
(in Costs
dollars) (in
0
Fixed Total Average
Costs
Total Costs
(in (in dollars
per unit)
35
60
dollars) dollars)
15 40 55
40 40
40 75 37.5
40 100
125 40 165
55
160 40 200
marginal unit produced
Average Variable
Costs (in dollars per
unit)
90 40 130 32.5 22.5
15
33.3
17.5
33.3 20
26.6
Marginal
Costs
(in dollars
per unit)
15
20
40
is subtracting from profits.
the purchase price is higher than the average
cost.
the purchase price is the same as the average
cost.
is adding to profits.
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