Suppose that the total fixed cost for a particular competitive firm is $6. The marginal cost for the first unit produced is $9 and decreases by $2 for each of the next two units produced. Thereafter, marginal cost increases by $2 for each additional unit. a. Complete the table below. Round your "Average Variable Cost". "Average Total Cost" answers to 2 decimal places. Marginal Cost Total Variable Average Variable Average Total Units Total Cost Cost Cost Cost 1 15 15 2 22 16 11 27 5 21 9 4 34 28 7 8.5 43 37 74 8.6 b. What is the shutdown price? What is the break-even price? Shutdown price: Break-even price: c. If the market price is $11, what is the firm's profit maximizing output? What is the firm's total profit or loss? Output: Total: Profit

Suppose that the total fixed cost for a particular competitive firm is $6. The marginal cost for the first unit produced is $9 and decreases by $2 for each of the next two units produced. Thereafter, marginal cost increases by $2 for each additional unit. a. Complete the table below. Round your "Average Variable Cost". "Average Total Cost" answers to 2 decimal places. Marginal Cost Total Variable Average Variable Average Total Units Total Cost Cost Cost Cost 1 15 15 2 22 16 11 27 5 21 9 4 34 28 7 8.5 43 37 74 8.6 b. What is the shutdown price? What is the break-even price? Shutdown price: Break-even price: c. If the market price is $11, what is the firm's profit maximizing output? What is the firm's total profit or loss? Output: Total: Profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Please explain how to calculate the profit calculation

Suppose that the total fixed cost for a particular competitive firm is $6. The marginal cost for the first unit produced is $9 and
decreases by $2 for each of the next two units produced. Thereafter, marginal cost increases by $2 for each additional unit.
a. Complete the table below. Round your "Average Variable Cost". "Average Total Cost" answers to 2 decimal places.
Total
Average
Variable
Average
Total
Marginal
Units
Total Cost
Variable
Cost
Cost
Cost
Cost
1
15
6
22
16
8
11
27
21
34
28
8.5
43
37
7.4
8.6
6
54
48
9
b. What is the shutdown price? What is the break-even price?
Shutdown price:
Break-even price:
c. If the market price is $11, what is the firm's profit maximizing output? What is the firm's total profit or loss?
Output:
Total: Profit
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