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Refer to the table below. Note that the first column shows variable costs. Quantity Cost Fixed Total Average (in dollars) Costs Costs Total Costs (in (in (in dollars unit) dollars) per unit) dollars) 1 2 3 4 50 6 0 15 40 35 60 90 40 160 40 40 100 40 .. 75 37.5 55 40 130 32.5 125 40 165 33 200 33.3 33.3 Average Variable Costs (in dollars per : 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? Olosses 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 Fixed Total Average (in dollars) Costs Costs Total Costs (in (in (in dollars unit) dollars) per unit) dollars) 1 2 3 4 50 6 0 15 40 35 60 90 40 160 40 40 100 40 .. 75 37.5 55 40 130 32.5 125 40 165 33 200 33.3 33.3 Average Variable Costs (in dollars per : 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? Olosses equal $15 profts equal $15 profts equal $25 losses equal $25

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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Refer to the table below. Note that the first column shows variable costs. | Quantity | Cost (in dollars) | Fixed Costs (in dollars) | Total Costs (in dollars) | Average Total Costs (in dollars per unit) | Average Variable Costs (in dollars per unit) | Marginal Costs (in dollars per unit) | |----------|------------------|------------------------|------------------------|-----------------------------------------|---------------------------------------------|-------------------------------------| | 0 | 0 | 40 | 40 | -- | -- | -- | | 1 | 15 | 40 | 55 | 55 | 15 | 15 | | 2 | 35 | 40 | 75 | 37.5 | 17.5 | 20 | | 3 | 60 | 40 | 100 | 33.3 | 20 | 25 | | 4 | 90 | 40 | 130 | 32.5 | 22.5 | 30 | | 5 | 125 | 40 | 165 | 33 | 25 | 35 | | 6 | 160 | 40 | 200 | 33.3 | 26.6 | 40 | **Question:** If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? - [x] **losses equal $15** - [ ] profits equal $15 - [ ] profits equal $25 - [ ] losses equal $25
Transcribed Image Text:Refer to the table below. Note that the first column shows variable costs. | Quantity | Cost (in dollars) | Fixed Costs (in dollars) | Total Costs (in dollars) | Average Total Costs (in dollars per unit) | Average Variable Costs (in dollars per unit) | Marginal Costs (in dollars per unit) | |----------|------------------|------------------------|------------------------|-----------------------------------------|---------------------------------------------|-------------------------------------| | 0 | 0 | 40 | 40 | -- | -- | -- | | 1 | 15 | 40 | 55 | 55 | 15 | 15 | | 2 | 35 | 40 | 75 | 37.5 | 17.5 | 20 | | 3 | 60 | 40 | 100 | 33.3 | 20 | 25 | | 4 | 90 | 40 | 130 | 32.5 | 22.5 | 30 | | 5 | 125 | 40 | 165 | 33 | 25 | 35 | | 6 | 160 | 40 | 200 | 33.3 | 26.6 | 40 | **Question:** If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? - [x] **losses equal $15** - [ ] profits equal $15 - [ ] profits equal $25 - [ ] losses equal $25
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