You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table:
Q | TVC |
0 | 0 |
1 | 100 |
2 | 150 |
3 | 180 |
4 | 220 |
5 | 300 |
6 | 390 |
Complete the following table:
Market Price | Profit maximizing level of output | Profit |
$48 | ||
$60 | ||
$75 | ||
$85 |
Q | TVC | TFC | TC | MC |
0 | 0 | 30 | 30 | |
1 | 100 | 30 | 130 | 100 |
2 | 150 | 30 | 180 | 50 |
3 | 180 | 30 | 210 | 30 |
4 | 220 | 30 | 250 | 40 |
5 | 300 | 30 | 330 | 80 |
6 | 390 | 30 | 420 | 90 |
Setting P=MC, the output produced:-
Profit = TR-TC
Market Price | Profit-maximizing level of output | Profit |
$48 | 4 | 48*4-250 = -58 |
$60 | 4 | 60*4-250 = -10 |
$75 | 4 | 75*4-250 = 50 |
$85 | 5 | 85*5-330 = 95 |
You are operating a firm in a perfectly competitive market. In the short run, you have...
You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table: Q TVC 0 0 1 100 2 150 3 180 4 220 5 300 6 390 Complete the following table: Market Price Profit maximizing level of output Profit $48 $60 $75 $85
You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table: QTVC 1100 2150 3 180 4 220 5 300 6 390 Complete the following table Market Price Profit maximizing level of output Profit $52 $60 $70 $85
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