Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Question 11
11.1. Revenue is the same as profit. Do you agree with this statement? Justify your answer.
11.2. Using your knowledge of cost formulas and calculations for a firm producing in the
short-run, redraw the table below in your answer book and complete the table by filling
in the blank spaces. [Tip: Answers should be rounded off by two decimals]. (5)
Total
Average
Variable
Cost
Average
Total
Cost
(ATC)
Total
Total
Cost
Average
Fixed
Fixed
Cost
Marginal
Cost
(MC)
Variable
Quantity
Cost
Cost
(TFC)
(TVC)
(TC)
(AFC)
(AVC)
80
80
1
80
12
80
12
2
80
28
40
14
54
3
34
114
26.67
38
6.
4
80
39
119
20
9.75
29.75
80
42
122
16
8.4
24.4
80
128
13.33
8
21.33
7
80
56
136
11.43
8
8
80
61
141
10
7.63
17.63
9
80
68
148
7.56
16.44
10
80
157
8
7.7
15.7
9.
11.3.
Suppose a firm producing coffee provides you with the following information:
Price = R100
Quantity = 150 units of coffee
Cost of production = R9500
11.3.1.
Calculate the total revenue of the firm.
11.3.2.
Is the firm currently making a profit or loss? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc0cda80-4d66-44d5-9867-6cf21955985c%2Ff546c296-4c8c-4263-a700-f284818b41af%2Fby6j0a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 11
11.1. Revenue is the same as profit. Do you agree with this statement? Justify your answer.
11.2. Using your knowledge of cost formulas and calculations for a firm producing in the
short-run, redraw the table below in your answer book and complete the table by filling
in the blank spaces. [Tip: Answers should be rounded off by two decimals]. (5)
Total
Average
Variable
Cost
Average
Total
Cost
(ATC)
Total
Total
Cost
Average
Fixed
Fixed
Cost
Marginal
Cost
(MC)
Variable
Quantity
Cost
Cost
(TFC)
(TVC)
(TC)
(AFC)
(AVC)
80
80
1
80
12
80
12
2
80
28
40
14
54
3
34
114
26.67
38
6.
4
80
39
119
20
9.75
29.75
80
42
122
16
8.4
24.4
80
128
13.33
8
21.33
7
80
56
136
11.43
8
8
80
61
141
10
7.63
17.63
9
80
68
148
7.56
16.44
10
80
157
8
7.7
15.7
9.
11.3.
Suppose a firm producing coffee provides you with the following information:
Price = R100
Quantity = 150 units of coffee
Cost of production = R9500
11.3.1.
Calculate the total revenue of the firm.
11.3.2.
Is the firm currently making a profit or loss? Explain.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education