total revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please answer 11.2 and 11.3
![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 fillina
in the blank spaces. [Tip: Answers should be rounded off by two decimals].
Total
Total
Fixed
Cost
(TFC)
Variable
Cost
(TVC)
Total
Cost
Average
Fixed
Average
Variable
Cost
Average
Total
Cost
Marginal
Cost
(MC)
Quantity
Cost
(TC)
(AFC)
(AVC)
(ATC)
80
80
1
80
80
12
80
28
40
14
54
3
34
114
26.67
38
6.
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%2F101ddd89-fa4b-459c-b31f-b3d770c3b167%2F9ou80x6_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 fillina
in the blank spaces. [Tip: Answers should be rounded off by two decimals].
Total
Total
Fixed
Cost
(TFC)
Variable
Cost
(TVC)
Total
Cost
Average
Fixed
Average
Variable
Cost
Average
Total
Cost
Marginal
Cost
(MC)
Quantity
Cost
(TC)
(AFC)
(AVC)
(ATC)
80
80
1
80
80
12
80
28
40
14
54
3
34
114
26.67
38
6.
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.
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