$10 MC ATC 9 8 AVC 7 2 1 2 3 4 5 6 7 8 9 10 Quantity (in 1,000s) What is: (1) AVC at 6000 units of output? q4 Per unit (2) ATC at 6000 units of output? 5.5 Per unit (3) AFC at 6000 units of output? 55.5-4:15 (4) TVC at 60Ỏ0 units of output? UX6000= 24000 (5) TFC at all levels of output? .ら×6000-9000 (6) TC at 10,000 units of output? (7) When does diminishing returns set in? Gooouhits Suppose this firm operates in a perfectly competitive market. (8) If the market price (the price the firm must take) is $3, what quantity maximizes profits? What is profit? (9) If the market price (the price the firm must take) is $5.50, what quantity maximizes profits? What is profit? (10) If the market price (the price the firm must take) is $9, what quantity maximizes profits? What is profit? Cost per unit Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell an unlimited amount at the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 1 10 7 15 4 14 12 19 24 25 7 45 Recalculate, given the small increase in fixed cost and the change in the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 1 6 10 7 3 15 30 4 14 24 25 45
$10 MC ATC 9 8 AVC 7 2 1 2 3 4 5 6 7 8 9 10 Quantity (in 1,000s) What is: (1) AVC at 6000 units of output? q4 Per unit (2) ATC at 6000 units of output? 5.5 Per unit (3) AFC at 6000 units of output? 55.5-4:15 (4) TVC at 60Ỏ0 units of output? UX6000= 24000 (5) TFC at all levels of output? .ら×6000-9000 (6) TC at 10,000 units of output? (7) When does diminishing returns set in? Gooouhits Suppose this firm operates in a perfectly competitive market. (8) If the market price (the price the firm must take) is $3, what quantity maximizes profits? What is profit? (9) If the market price (the price the firm must take) is $5.50, what quantity maximizes profits? What is profit? (10) If the market price (the price the firm must take) is $9, what quantity maximizes profits? What is profit? Cost per unit Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell an unlimited amount at the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 1 10 7 15 4 14 12 19 24 25 7 45 Recalculate, given the small increase in fixed cost and the change in the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 1 6 10 7 3 15 30 4 14 24 25 45
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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