Homework Answers
| Q | TC | MC | ATC(TC/Q) |
| 1 | 12 | 12 | 12 |
| 2 | 14 | 2 | 7 |
| 3 | 18 | 4 | 6 |
| 4 | 24 | 6 | 6 |
| 5 | 32 | 8 | 6.4 |
| 6 | 42 | 10 | 7 |
| 7 | 54 | 12 | 7.7 |
| 8 | 68 | 14 | 8.5 |
| 9 | 84 | 16 | 9.3 |
a) when P =10
The firm will set P=MC for profit maximization so it will produce Q = 6 units
b) In the long run, the price = minimum ATC = 6
c) Profit maximizing output = 4 units
d) Profits = 0
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