Homework Answers
Answer a : Table showing relevant information as follows :
| Quantity | Total cost | Fixed cost | Variable cost | Average total cost | Average variable Cost | Marginal cost |
| 0 | 500 | 500 | - | - | - | - |
| 100 | 713 | 500 | 213 | 7.13 | 2.13 | 213 |
| 200 | 800 | 500 | 300 | 4 | 1.5 | 87 |
| 300 | 838 | 500 | 338 | 2.80 | 1.12 | 38 |
| 400 | 900 | 500 | 400 | 2.25 | 1 | 62 |
| 500 | 1063 | 500 | 563 | 2.126 | 1.126 | 163 |
| 600 | 1313 | 500 | 813 | 2.18 | 1.35 | 250 |
B . In perfect competitive Market , profit maximisation point where Marginal revenue =Marginal cost.Therefore, it produce at the level of unit produced 600 units
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# # Quantity (gallons per day)# 0A 100# 2007 300A 400# 500# 600A | Total cost...
Quantity (gallons) Total Cost ($) Average Total Marginal Cost Cost ($) ($/gallon) 0 9 1 10...
Quantity (gallons) Total Cost ($) Average Total Marginal Cost Cost ($) ($/gallon) 0 9 1 10 2 13 3 18 4 25 5 34 a. Compute each producer's marginal cost and average total cost for 1 to 5 gallons. b. The price of a gallon of milk is now $10. How many gallons are sold? How many gallons does each producer make? How many producers are there? How much profit does each producer earn? c. Is the situation described in...
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6 Assume renti wplete the following table. Quantity Total Cost Colete the lo Average Cost Marginal Cost or Outpur 16...
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MC ATC Cost ($ per unit) ONWA0BB 9 10 Quantity The figure above gives the marginal cost (MC) and average total cost (ATC) curves for a firm operating in a perfectly competitive market with a market price of $7. Use this figure to answer the questions below. a. What is the profit maximizing quantity of output? b. When profit is maximized, what is the economic profit?
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number 6
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Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost...
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Quantity (gallons) Total Cost ($) Average Total Marginal Cost Cost ($) ($/gallon) 0 9 1 10 2 13 3 18 4 25 5 34 a. Compute each producer's marginal cost and average total cost for 1 to 5 gallons. b. The price of a gallon of milk is now $10. How many gallons are sold? How many gallons does each producer make? How many producers are there? How much profit does each producer earn? c. Is the situation described in...
nsert Page Layout Formulas Data Review ViewAd-ins Acrobat Home s Cut Tw Cen MT Wrap Text Copy" Format Painter Bu a center. $ . % , a4l conditional format Formatting as Table Check Cel Number M15 I. Short-run and Long-run Equilibrium: Cost and Output Determination: Fill the red-colored cells Profit Maximiation: A Numerical Example The Valley Farm produces a quanfity quant of milk,Q,and sells each unit at the in galon market price, P Marginal Marginal Cost (MC-ATC/Aa Total Revenue Total...
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number 6
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