Scenario 14-1. A competitive firm sells its output for $20 per unit. When the firm produces 200 units of output, average variable cost is $16, marginal cost is $18, and average total cost is $23.15. Refer to Scenario 14-1. Calculate the firm’s total revenue, total cost, and profit at 200 units of output. Peter operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a monopoly over his own ice cream, though he competes with many other firms selling ice cream in Fairfield for the same customers. Peter’s demand and cost values for sales per day are given in the table below. (Everyone who purchases Peter’s ice cream buys a double scoop cone because it’s so delicious.) Quantity Price MR MC ATC 20 $5.60 $5.20 $2.20 $2.05 40 $5.20 $4.40 $2.40 $2.10 60 $4.80 $3.60 $2.60 $2.15 80 $4.40 $2.80 $2.80 $2.20 100 $4.00 $2.00 $3.00 $2.25 120 $3.60 $1.20 $3.20 $2.30 140 $3.20 $0.40 $3.40 $2.35 160 $2.80 -$0.40 $3.60 $2.40 180 $2.40 -$1.20 $3.80 $2.45 5. Refer to Scenario 16-3. When Peter maximizes his profits, what is his total cost per day?
Scenario 14-1. A competitive firm sells its output for $20 per unit. When the firm produces 200 units of output,
15. Refer to Scenario 14-1. Calculate the firm’s total revenue, total cost, and profit at 200 units of output.
Peter operates an ice cream shop in the center of Fairfield. He sells several unusual flavors of organic, homemade ice cream so he has a
|
Quantity |
Price |
MR |
MC |
ATC |
|
20 |
$5.60 |
$5.20 |
$2.20 |
$2.05 |
|
40 |
$5.20 |
$4.40 |
$2.40 |
$2.10 |
|
60 |
$4.80 |
$3.60 |
$2.60 |
$2.15 |
|
80 |
$4.40 |
$2.80 |
$2.80 |
$2.20 |
|
100 |
$4.00 |
$2.00 |
$3.00 |
$2.25 |
|
120 |
$3.60 |
$1.20 |
$3.20 |
$2.30 |
|
140 |
$3.20 |
$0.40 |
$3.40 |
$2.35 |
|
160 |
$2.80 |
-$0.40 |
$3.60 |
$2.40 |
|
180 |
$2.40 |
-$1.20 |
$3.80 |
$2.45 |
5. Refer to Scenario 16-3. When Peter maximizes his profits, what is his total cost per day?
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 4 images
