Homework Answers
Ans: 5 units
Explanation:
Marginal cost = change in total cost / change in quantity
Marginal revenue = change in total revenue / change in quantity
Total Revenue = Price * Quantity
| Price | Quantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue |
| $6 | 0 | $4 | -- | $0 | -- |
| $6 | 1 | $6 | $2 | $6 | $6 |
| $6 | 2 | $9 | $3 | $12 | $6 |
| $6 | 3 | $13 | $4 | $18 | $6 |
| $6 | 4 | $18 | $5 | $24 | $6 |
| $6 | 5 | $24 | $6 | $30 | $6 |
| $6 | 6 | $31 | $7 | $36 | $6 |
Ans: None of the above are correct.
Explanation:
In the short run , fixed cost are available even at zero level of output and remain constant throughout the subsequent level of production.
But average fixed cost decreases in the subsequent level of production.
Add Answer to:
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