Use the table below to answer the following questions: Costs Revenues Price ($) Total Quantity Produced Marginal Cost Quantity Demanded Marginal Revenue Total Cost Revenue 100 170 140 160 2 184 150 3 230 140 280 4 130 335 395 475 575 5 120 6. 6. 110 100 95 a. Find the average fixed cost and average variable cost for the 4th unit of output. b. How much does profit change if 6 units are sold instead of 5?
Use the table below to answer the following questions: Costs Revenues Price ($) Total Quantity Produced Marginal Cost Quantity Demanded Marginal Revenue Total Cost Revenue 100 170 140 160 2 184 150 3 230 140 280 4 130 335 395 475 575 5 120 6. 6. 110 100 95 a. Find the average fixed cost and average variable cost for the 4th unit of output. b. How much does profit change if 6 units are sold instead of 5?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![1. Use the table below to answer the following questions:
Costs
Revenues
Total Cost
Marginal
Cost
Quantity
Price ($)
Quantity
Produced
Total
Marginal
Revenue
Demanded
Revenue
100
170
140
160
184
150
3
230
3
140
280
4
130
5
335
395
5
120
110
7
475
7
100
575
8
95
a. Find the average fixed cost and average variable cost for the 4th unit of output.
b. How much does profit change if 6 units are sold instead of 5?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d8dbe5f-ae05-4978-8855-6a3238e0faac%2F94cf1d07-583f-4100-b484-bdec7ae87fcb%2Fjrg62qs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Use the table below to answer the following questions:
Costs
Revenues
Total Cost
Marginal
Cost
Quantity
Price ($)
Quantity
Produced
Total
Marginal
Revenue
Demanded
Revenue
100
170
140
160
184
150
3
230
3
140
280
4
130
5
335
395
5
120
110
7
475
7
100
575
8
95
a. Find the average fixed cost and average variable cost for the 4th unit of output.
b. How much does profit change if 6 units are sold instead of 5?
![b. How much does profit change if 6 units are sold instcad of 5?
2. The diagram below shows a perfectly competitive firm. Use the diagram to answer the following
questions.
MC
ATC
I
AVC
23
22
16
MR
12
14
17 19
Quantity (units)
What is the profit maximizing level of output for the firm?
b. What is the economic profit earned or loss incurred by the firm?
a.
- Based on your answers of (a) & (b) determine if the firm should shut down or operate in the
short run. Explain your answer.
Price (dollars per unit)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d8dbe5f-ae05-4978-8855-6a3238e0faac%2F94cf1d07-583f-4100-b484-bdec7ae87fcb%2Fsz2xcdm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. How much does profit change if 6 units are sold instcad of 5?
2. The diagram below shows a perfectly competitive firm. Use the diagram to answer the following
questions.
MC
ATC
I
AVC
23
22
16
MR
12
14
17 19
Quantity (units)
What is the profit maximizing level of output for the firm?
b. What is the economic profit earned or loss incurred by the firm?
a.
- Based on your answers of (a) & (b) determine if the firm should shut down or operate in the
short run. Explain your answer.
Price (dollars per unit)
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