Select all statements that are true using the attached chart. A.)Breakeven is the quantity where TR - TC = 0 B.)The profit maximizing quantity of participants/bags is MR ≥ MC 300 C.) The profit maximizing quantity of participants/bags MR ≤ MC 400 D.) Using Qb = F/(MR – AVC) the breakeven quantity of participants/bags is 113 and 115 bags.
Select all statements that are true using the attached chart. A.)Breakeven is the quantity where TR - TC = 0 B.)The profit maximizing quantity of participants/bags is MR ≥ MC 300 C.) The profit maximizing quantity of participants/bags MR ≤ MC 400 D.) Using Qb = F/(MR – AVC) the breakeven quantity of participants/bags is 113 and 115 bags.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Select all statements that are true using the attached chart.
A.)Breakeven is the quantity where TR - TC = 0
B.)The profit maximizing quantity of participants/bags is MR ≥ MC 300
C.) The profit maximizing quantity of participants/bags MR ≤ MC 400
D.) Using Qb = F/(MR –
Transcribed Image Text:The image shows a spreadsheet with data relating to costs, revenue, and profits in a business scenario. Here is a breakdown of the columns and values:
1. **Participants**: The number of participants or units, ranging from 0 to 1000.
2. **Fixed Cost**: A constant value of 1700, indicating costs that do not change with the number of participants.
3. **Variable Cost**: Incremental costs depending on the participants, starting from 0 and increasing by intervals of 500 to 83000.
4. **Total Cost**: Calculated by adding Fixed and Variable Costs, starting from 1700 and increasing up to 84700.
5. **Average Variable Cost**: The variable cost per participant, shown as "#DIV/0!" for 0 participants, then calculated from 5 to 83.
6. **Marginal Cost**: The additional cost of producing one more unit, starting from 1700 and decreasing to 272.
7. **TR $20 (Total Revenue)**: The revenue generated by selling products at $20 each, from 0 to 20000.
8. **MR (Marginal Revenue)**: Revenue per additional unit sold, maintained at 20 across all participant levels.
9. **TP (Total Profit)**: The difference between Total Revenue and Total Cost, ranges from -1700 (loss) to -64700.
The spreadsheet is labeled as "Sheet1," and at the bottom, it shows the file name "Shereeta Ashenfelter" as part of "EXTERNAL Problem Set 1 Handout for St…" with a date of "Wed 10/12."
This table can be used to analyze how changes in production levels affect costs, revenues, and profitability.
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