Question

Plz help me fill the the AVC row in this chart. also can you tell me what’s suppose to be hightlighted for question 7? And explain question 8 to me?

The talde below represents the output and cost structure for a tim. The market is perfectly petitive, and the market price is $10. Total costs include all implicit opportunity costs y Marginal Maral Cost Revenue Total Average Total Cost Average Variable Cost een Profi 1. Calculate the firm's profit at ych rate of output and fill in the values in the table. Calculate firm's marginal cost and hearginal revenue at each rate of output and fill in the values in the table. 3: Calculate the firm's average total cost and average variable costs at each rate of output and fill in the values in the table 4. Based on the information in the table above, plot marginal cost (MC) at each rate of output. Properly label this line. 5. Based on the information in the table above, plot marginal revenue (MR) at eachtate of output, Properly label each line. 6. Based on the information in the table above, plot average total costs (ATC) and average variable costs at each rate of output. Properly label each line. 7. Highlight in yellow the short-run supply curve for this perfectly competitive firm Based on marginal analysis, what is the profit maximizing rate of output for the Roi

Answer 1

At output =0, Total cost =3

This means that total fixed cost = 3

Output AFC. AVC(ATC-AFC)

0. -. -

1. 3. 4

2. 1.5. 3

3. 1. 2.3

4. 0.75. 2.25

5. 0.6. 2.6( Here ATC = 3.2)

6. 0.5. 3.1

7. 0.43. 0

8. 0.375. 4.625

9. 0.33. 5.37

10 0.3. 6.5

Answer-7 For this one you must highlight 10,12,16 in the Marginal cost column.

Answer-8 Profit-maximising rate of output for this firm is 10.