Q 5. (В) Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total cost function is given in the following schedule: Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the owner has invested in the firm. The prevailing market price is $7 per unit. (a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm. (b) What is the firm's profit maximizing output level?
Q 5. (В) Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total cost function is given in the following schedule: Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the owner has invested in the firm. The prevailing market price is $7 per unit. (a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm. (b) What is the firm's profit maximizing output level?
Chapter1: Making Economics Decisions
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![Q 5.
(В)
Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total
cost function is given in the following schedule:
Output
(Units)
Total Cost
($)
50
10
120
20
170
30
210
40
260
50
330
60
430
Total costs include a "normal" return on the time (labor services) and capital that the owner
has invested in the firm. The prevailing market price is $7
per
unit.
(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.
(b) What is the firm's profit maximizing output level?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9cf4f75f-53f7-44a3-87f8-7a272a4e05f1%2F2b70e09e-7bce-47f4-946e-7487cb0cae65%2Fmgdf6bm_processed.png&w=3840&q=75)
Transcribed Image Text:Q 5.
(В)
Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total
cost function is given in the following schedule:
Output
(Units)
Total Cost
($)
50
10
120
20
170
30
210
40
260
50
330
60
430
Total costs include a "normal" return on the time (labor services) and capital that the owner
has invested in the firm. The prevailing market price is $7
per
unit.
(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.
(b) What is the firm's profit maximizing output level?
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