You own a business that operates in perfect competition, and the market price of the product is $15 per unit. Q is the number of units for production. Your costs of production are shown below. The time period is fixed at one month All revenues and costs are calculated at the monthly rate. A. determine the number of units that you will select. Justify and support your answer using the information on this problem. Select only whole numbers of Q B. calculate the profit that will be earned in Part A. Q FC VC MC TC AFC AVC ATC 0 $40.00 $0.00 xxx $40.00 xxx xxx xxx 1 $40.00 $30.00 $30.00 $70.00 $40.00 $30.00 $70.00 2 $40.00 $44.00 $14.00 $84.00 $20.00 $22.00 $42.00 3 $40.00 $60.00 $16.00 $100.00 $13.33 $20.00 $33.33 4 $40.00 $80.00 $20.00 $120.00 $10.00 $20.00 $30.00 5 $40.00 $110.00 $30.00 $150.00 $8.00 $22.00 $30.00 6 $40.00 $150.00 $40.00 $190.00 $6.67 $25.00 $31.67 7 $40.00 $200.00 $50.00 $240.00 $5.71 $28.57 $34.29 8 $40.00 $280.00 $80.00 $320.00 $5.00 $35.00 $40.00
You own a business that operates in
A. determine the number of units that you will select. Justify and support your answer using the information on this problem. Select only whole numbers of Q
B. calculate the profit that will be earned in Part A.
|
Q |
FC |
VC |
MC |
TC |
AFC |
|
|
|
0 |
$40.00 |
$0.00 |
xxx |
$40.00
|
xxx |
xxx |
xxx |
|
1 |
$40.00 |
$30.00 |
$30.00 |
$70.00 |
$40.00 |
$30.00 |
$70.00 |
|
2 |
$40.00 |
$44.00 |
$14.00 |
$84.00 |
$20.00 |
$22.00 |
$42.00 |
|
3 |
$40.00 |
$60.00 |
$16.00 |
$100.00 |
$13.33 |
$20.00 |
$33.33 |
|
4 |
$40.00 |
$80.00 |
$20.00 |
$120.00 |
$10.00 |
$20.00 |
$30.00 |
|
5 |
$40.00 |
$110.00 |
$30.00 |
$150.00 |
$8.00 |
$22.00 |
$30.00 |
|
6 |
$40.00 |
$150.00 |
$40.00 |
$190.00 |
$6.67 |
$25.00 |
$31.67 |
|
7 |
$40.00 |
$200.00 |
$50.00 |
$240.00 |
$5.71 |
$28.57 |
$34.29 |
|
8 |
$40.00 |
$280.00 |
$80.00 |
$320.00 |
$5.00 |
$35.00 |
$40.00 |
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