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Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 0 50 50 50 35 50 60 50 200 90 250 125 300 165 50 350 210 50 400 260 50 450 315 50 100 150 0 20 50 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 0 0 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 888 (Round your responses to two decimal places.) b. Draw a scale diagram and plot ATC, AVC, and MC. Use the multipoint drawing tool to plot the ATC, AVC, and MC curves. Properly label the curves. (Plot MC at the midpoint of the output intervals.) Carefully follow the instructions above, and only draw the required objects. c. Below which price should this firm choose to produce zero output? This firm should choose to produce zero output at prices below $ (Round your response to two decimal places.)

Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 0 50 50 50 35 50 60 50 200 90 250 125 300 165 50 350 210 50 400 260 50 450 315 50 100 150 0 20 50 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 0 0 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 888 (Round your responses to two decimal places.) b. Draw a scale diagram and plot ATC, AVC, and MC. Use the multipoint drawing tool to plot the ATC, AVC, and MC curves. Properly label the curves. (Plot MC at the midpoint of the output intervals.) Carefully follow the instructions above, and only draw the required objects. c. Below which price should this firm choose to produce zero output? This firm should choose to produce zero output at prices below $ (Round your response to two decimal places.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 0 50 50 50 35 50 60 50 200 90 250 125 300 165 50 350 210 50 400 260 50 450 315 50 100 150 0 20 50 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 0 0 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 888 (Round your responses to two decimal places.) b. Draw a scale diagram and plot ATC, AVC, and MC. Use the multipoint drawing tool to plot the ATC, AVC, and MC curves. Properly label the curves. (Plot MC at the midpoint of the output intervals.) Carefully follow the instructions above, and only draw the required objects. c. Below which price should this firm choose to produce zero output? This firm should choose to produce zero output at prices below $ (Round your response to two decimal places.)
Transcribed Image Text:Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 0 50 50 50 35 50 60 50 200 90 250 125 300 165 50 350 210 50 400 260 50 450 315 50 100 150 0 20 50 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 0 0 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 888 (Round your responses to two decimal places.) b. Draw a scale diagram and plot ATC, AVC, and MC. Use the multipoint drawing tool to plot the ATC, AVC, and MC curves. Properly label the curves. (Plot MC at the midpoint of the output intervals.) Carefully follow the instructions above, and only draw the required objects. c. Below which price should this firm choose to produce zero output? This firm should choose to produce zero output at prices below $ (Round your response to two decimal places.)
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