Homework Answers
To answer this question, I have made the following table:
| Units | Average cost | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue |
| 150 | 24.5 | 3675 | - | 6000 | - |
| 151 | 24.55 | 3707.05 | 32.05 | 6040 | 40 |
Total Cost is computed using the formula: Average Cost * Number of units
Total Revenue is computed using the formula: Price * Number of units
Clealrly, The Marginal Revenue exceeds the Marginal cost by $7.95
Hence, the answer is OPTION A
In case of any query, feel free to comment
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Please complete #4
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please i want it typed please Styles 14. The Vague Fabric Company sells cotton fabric in...
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Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $140 and increasing, and average variable cost is $120. Assuming it wants to maximize its profits, it should: u increase output. o decrease output, but not shut down. u maintain its current output rate. shut down.
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Please complete #4
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Q at constant price p
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please i want it typed please
Styles 14. The Vague Fabric Company sells cotton fabric in a perfectly competitive market at a price of $4 per yard. Its marginal cost, average variable cost, and average total cost curves can be seen below. price MC ATC d=MR AVC Find the profit-maximizing level of output and mark it q* Shade in the area of profit earned by the firm. Is it positive or negative? How do you know? 15. The Binkle Binder...
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