Homework Answers
Use the relation, ATC = Total cost / quantity
and MC = change in TC / change in quantity
Then complete the table which is done below
| output | Total cost | Marginal cost | Average cost |
| 10 | 220 | 22 | |
| 15 | 300 | 16 | 20 |
| 20 | 360 | 12 | 18 |
| 25 | 450 | 18 | 18 |
| 30 | 600 | 30 | 20 |
| 35 | 770 | 34 | 22 |
| 40 | 960 | 38 | 24 |
If price is 34, 35 units are produced. This is because P = MC = 34 is true for 35 units
Profit per unit is (34 - 22) = $12 and total profit is 12*35 = $420
No because there are economic profits in this case.
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