Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
|
Units of fixed input K |
Labor Hours (L) |
Output (Q) |
TFC |
TVC |
TC |
AFC |
|
|
MC |
|
3 |
0 |
0 |
90 |
0 |
90 |
0 |
0 |
0 |
0 |
|
3 |
1 |
4 |
90 |
20 |
110 |
22.5 |
5 |
27.5 |
5 |
|
3 |
2 |
90 |
90 |
40 |
130 |
1 |
0.444 |
1.444 |
0.233 |
|
3 |
3 |
160 |
90 |
60 |
150 |
0.563 |
0.375 |
0.938 |
0.286 |
|
3 |
4 |
200 |
90 |
80 |
170 |
0.45 |
0.400 |
0.85 |
0.5 |
|
3 |
5 |
230 |
90 |
100 |
190 |
0.391 |
0.435 |
0.826 |
0.667 |
|
3 |
6 |
250 |
90 |
120 |
210 |
0.36 |
0.480 |
0.84 |
1 |
|
3 |
7 |
260 |
90 |
140 |
230 |
0.346 |
0.538 |
0.885 |
2 |
|
3 |
8 |
265 |
90 |
160 |
250 |
0.340 |
0.604 |
0.943 |
4 |
- If the
price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
Expert Solution
Step 1
In a market, producers have to face various constraints such as cost minimizing or profit-maximizing, and so on. To satisfy these constraints, a producer needs to make effective decisions related to the combination of inputs or optimum output levels.
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