Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6 (in dollars) Costs 0 15 35 60 90 Fixed Total Average Average Variable Costs Total Costs Costs (in dollars per (in (in (in dollars unit) dollars) dollars) per unit) 160 40 40 40 55 55 40 75 37.5 40 100 125 40 40 130 32.5 165 33 : 33.3 20 40 200 33.3 15 17.5 22.5 25 26.6 Marginal Costs (in dollars per unit) 15 20 25 30 35 40 If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25
Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6 (in dollars) Costs 0 15 35 60 90 Fixed Total Average Average Variable Costs Total Costs Costs (in dollars per (in (in (in dollars unit) dollars) dollars) per unit) 160 40 40 40 55 55 40 75 37.5 40 100 125 40 40 130 32.5 165 33 : 33.3 20 40 200 33.3 15 17.5 22.5 25 26.6 Marginal Costs (in dollars per unit) 15 20 25 30 35 40 If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Refer to the table below. Note that the first column
shows variable costs.
Quantity Cost
0
1
2
3
5
6
(in dollars) Costs
0
15
35
60
90
Fixed Total Average
Costs
Total Costs
(in (in (in dollars
dollars) per unit)
dollars)
160
40 40
40 55 55
:
40 75 37.5
40 100
125 40
33.3
40 130 32.5
165 33
40 200 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
If the firm produces 5 units that it sells at a price of
$30.00 each, what will its profits or losses equal?
losses equal $15
profts equal $15
profts equal $25
losses equal $25
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