Question

The short-runcost and revenue data of a certain producer are summarized in the table below.

1) The short-run cost and revenue data of a certain producer are summarized in the table below. [2 marks] (a) Distinguish between 'short run' and 'long run'. (b) Complete the blanks in the table. + [10 marks] Total Average variable Marginal Average total variable Output Unit Total Average Marginal Total Economic Profit in $m in price in $ (P) Cost Cost Cost Cost Cost revenue revenue revenue in $ (AR) in $ (MR) in $m (TC) in $ (ATC) in $ (AVC) in $ (MC) millions in $m (TR) in $m (TVC) (Q) 200 600 200 300 3 500 166.67 100 100 120 60 180 720 4 560 360 90 160 80 40 160 800 600 140 840 78 6 468 111.33 127 840 85 595 113.57 - 40 245 100 800 1040 105 330 80 1170 152.22 - 120 10 60 600 60 1650 -1250 millions of dollars) ($m O

Answer 1

Soun tuose cost 1Ma Shout kuu cost as fupats Heuce Tolal incead Talal frud wst + 1Tolal vauiaile iu huts auc vasialsls cost cast all inputs au whrh cost cost cosl ied tolal vai'abe cot sauialule Heuce Haci i Talalcost ( Loup Run) Auerage Maugtual Toial Tolal Reweruee ($) outhut (MGluious) nit Priue Revenuls) Rerseenли ({) 200 600 200 OQS 2-O 720 600 60 8 00 |4о 840 120 120 840 OOI -80 040 -40 1370 80 6 O 600 60 -12O Avuage Total Auuogevoxalde Nagrual Cos Tatal vaialle co c Ecoueic Authut cost C) uset C) 300 66.67 360 140 90 60 1400 20 468 11.33 78 T|3.57 45 -240 85 130 1oS а45 130 165 52.22 -6S0 330 6So H80 -1250

TUC + TEC 300 tTFC 500 1 ITEC = F20 ol ui lion AFC = TC Outhut for o, A FC Outhud for 1o AFC= 200 $20 ulim bw 6willie aud ušllion wit th fim's total rt stauti to sue apaiu frgun 11.33 (e)l lasesgae Masual Rewu is hotin to $i3.57 willion Recause Tota Reverus of Xeno 6 aud 7 uit A a seunti MC AC AVC luti) Quatry A-S A C AFCt AUc DTC AOuthuls MC= cort uut cuuafe Cunu MC asnd tAetton

rieiussy leel MC A C auol te Pont uthed at tine's shut clougu Pricu thue becaur afti Manuzig Rewn uthut 6 oleuleu would TR= 800 lul ofouthut uher choo aud tueis i cuau to at G uuit iuuiare Асlseuи ethut hoosi 84о uslich heu we 840 becauus AMR=O to Sauu wenu wluld be fouthut faathent ohiin at t. uit um