On the basis of the above answer, which of the following statements is true? The following table shows the quantity and MC at different levels of fixed costs. Use the following table to answer the next four questions. Price of output is given as $50. Q 0 1 2 3 4 5 6 7 8 9 10 MC 50 28 20 14 18 20 22 38 45 55 C (FC=100) C (FC = $150)| C (FC = $180) 100 150 180 200 230 228 258 248 278 262 292 280 310 300 330 322 352 360 390 405 435 460 490 150 178 198 212 230 250 272 310 355 410 a. The optimal output unaffected by the change in fixed cost because change in fixed cost does not change the profits of the firm. b. The optimal output is affected by the change in fixed cost because change in fixed cost changes the total cost and marginal cost of the firm. c. The optimal output unaffected by the change in fixed cost because change in fixed cost does not change marginal cost of the firm. d. The optimal output is affected by the change in fixed cost because change in fixed cost changes the price of the output.

On the basis of the above answer, which of the following statements is true? The following table shows the quantity and MC at different levels of fixed costs. Use the following table to answer the next four questions. Price of output is given as $50. Q 0 1 2 3 4 5 6 7 8 9 10 MC 50 28 20 14 18 20 22 38 45 55 C (FC=100) C (FC = $150)| C (FC = $180) 100 150 180 200 230 228 258 248 278 262 292 280 310 300 330 322 352 360 390 405 435 460 490 150 178 198 212 230 250 272 310 355 410 a. The optimal output unaffected by the change in fixed cost because change in fixed cost does not change the profits of the firm. b. The optimal output is affected by the change in fixed cost because change in fixed cost changes the total cost and marginal cost of the firm. c. The optimal output unaffected by the change in fixed cost because change in fixed cost does not change marginal cost of the firm. d. The optimal output is affected by the change in fixed cost because change in fixed cost changes the price of the output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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