Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost? Assume the following unit-cost data are for apurely competitive producer.Output AFC (S) AVC ($) ATC ($) MC ($)012345678910-6030201512108.577.56.676-4542.54037.53737.538.5740.6343.3346.5-10572.56052.54947.547.1448.135052.545403530354045556575

The profit-maximizing output is achieved in purely competetive market is when:P=MCNow, P=$56We will…

Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost?

Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost?

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

Use the following data to analyze the condition when the product price is set at $56.

A. How much would be the total revenue?

B. What will be the profit-maximizing or loss-minimizing output?

C. How much would be the total cost?

Assume the following unit-cost data are for a
purely competitive producer.
Output AFC (S) AVC ($) ATC ($) MC ($)
0
1
2
3
4
5
6
7
8
9
10
-
60
30
20
15
12
10
8.57
7.5
6.67
6
-
45
42.5
40
37.5
37
37.5
38.57
40.63
43.33
46.5
-
105
72.5
60
52.5
49
47.5
47.14
48.13
50
52.5
45
40
35
30
35
40
45
55
65
75

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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