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Table 1 below identifies the average variable cost (CVM), the average fixed cost (CFM) and the marginal cost (Cm) of a firm in pure and perfect competition. Tableau 1 Q CVM CFM Cm 100 12 20 - 200 10 10   300 11,33 6,67   400 14 5   500 18 4   2-1- Complete the marginal cost column.  2-2- What is the value of the break-even point? 2-3- What is the value of the closing threshold?  Suppose the market price is $ 22. 2-4- At this price, what quantity would maximize the total profit of the company?  2-5- If the market price fell to $ 14, what would you recommend to this business?

Table 1 below identifies the average variable cost (CVM), the average fixed cost (CFM) and the marginal cost (Cm) of a firm in pure and perfect competition. Tableau 1 Q CVM CFM Cm 100 12 20 - 200 10 10   300 11,33 6,67   400 14 5   500 18 4   2-1- Complete the marginal cost column.  2-2- What is the value of the break-even point? 2-3- What is the value of the closing threshold?  Suppose the market price is $ 22. 2-4- At this price, what quantity would maximize the total profit of the company?  2-5- If the market price fell to $ 14, what would you recommend to this business?

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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Table 1 below identifies the average variable cost (CVM), the average fixed cost (CFM) and the marginal cost (Cm) of a firm in pure and perfect competition.

Tableau 1

Q

CVM

CFM

Cm

100

12

20

-

200

10

10

  

300

11,33

6,67

  

400

14

5

  

500

18

4

  

2-1- Complete the marginal cost column. 

2-2- What is the value of the break-even point?

2-3- What is the value of the closing threshold? 

Suppose the market price is $ 22.

2-4- At this price, what quantity would maximize the total profit of the company? 

2-5- If the market price fell to $ 14, what would you recommend to this business? 

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