A firm has fixed costs of $60 and variable costs as indicated in the accompanying table. Complete the table and check your calculations by referring to question 3 at the end of Chapter 7. Explain how the location of each curve graphed in question 9a would be altered if (1) total fixed cost had been $100 rather than $60 and (2) total variable cost had been $10 less at each level of output. TotalTotalTotalTotalAverageAverageAverageMarginalProductFixed CostVariable CostCostFixed CostVariable CostTotal CostCost$$$$$$$452853120150518522527032539010465 3. Assume the following cost data are for a purely competitiveproducer: LO3AverageAverageAverageTotalFixedVariableTotalMarginalProductCostCostCostCost$45$60.00$45.00$105.0040230.0042.5072.5035320.0040.0060.0030415.0037.5052.5035512.0037.0049.0040610.0037.5047.504578.5738.5747.145587.5040.6348.13656.6743.3350.0075106.0046.5052.50a. At a product price of $56, will this firm produce in theshort run? Why or why not? If it is preferable to produce,what will be the profit-maximizing or loss-minimizingoutput? Explain. What economic profit or loss will thefirm realize per unit of output?b. Answer the relevant questions of 3a assuming productprice is $41.

Before any change in the TFC and TVC, the TFC = $60 and TVC is given as table. So the complete table…

Answered: Total Total Total Total Average Average…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

A firm has fixed costs of $60 and variable costs as indicated in the accompanying table. Complete the table and check your calculations by referring to question 3 at the end of Chapter 7. Explain how the location of each curve graphed in question 9a would be altered if (1) total fixed cost had been $100 rather than $60 and (2) total variable cost had been $10 less at each level of output.

Total
Total
Total
Total
Average
Average
Average
Marginal
Product
Fixed Cost
Variable Cost
Cost
Fixed Cost
Variable Cost
Total Cost
Cost
$
$
$
$
$
$
$
45
2
85
3
120
150
5
185
225
270
325
390
10
465

3. Assume the following cost data are for a purely competitive
producer: LO3
Average
Average
Average
Total
Fixed
Variable
Total
Marginal
Product
Cost
Cost
Cost
Cost
$45
$60.00
$45.00
$105.00
40
2
30.00
42.50
72.50
35
3
20.00
40.00
60.00
30
4
15.00
37.50
52.50
35
5
12.00
37.00
49.00
40
6
10.00
37.50
47.50
45
7
8.57
38.57
47.14
55
8
7.50
40.63
48.13
65
6.67
43.33
50.00
75
10
6.00
46.50
52.50
a. At a product price of $56, will this firm produce in the
short run? Why or why not? If it is preferable to produce,
what will be the profit-maximizing or loss-minimizing
output? Explain. What economic profit or loss will the
firm realize per unit of output?
b. Answer the relevant questions of 3a assuming product
price is $41.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions