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- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.Ssessm /assignm f'CollegeBoard AP Classroom Unit 3 Progress Check: FRQ 2. Quantity of Output Total Cost 0. $12 1. $14 $18 3. $24 4. $32 5. $42 $54 9. 7. $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm's profit-maximizing quantity of hats? Explain using marginal analysis. (0) Draw a correctly labeled graph showing the firm's demand and marginal cost curves, and show the profit-maximizing quantity of nats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm's profit-maximizing quantity of autput in the short run? Explain. B IU Type here to search P国Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6
- i. Calculate the marginal cost, marginal revenue and profit for each unitof production. ii. How many units should the firm produce to maximise profit?Mariam's Kitchen offers catered meals in a perfectly competitive industry. Mariam's machinery costs $100 per day and is the only fixed input. Her variable cost includes the wages paid to the chefs and the food ingredients. The variable cost per day for each level of output is given in the table below Quantity of Meals 0 10 20 30 40 50 VC 0 200 300 480 700 1000 TC AVC (a) Calculate Total cost, Average variable cost and marginal cost (b) Determine the break-even price? What is the shut-down price? (c) If Market price is $21, will Mariam earn profit or loss? ATC MCCost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm increased its output from 100 units to 200 units and from 200 units to 400 units? c. What is the firm experiencing as it increased it scale of operation from 100 units to 400 units? d. What is the firm experiencing if it chooses to produce at point P? Give reason for your answer. e. Which point would be the best point for the firm to produce at? Give reason for your answer.
- See Hi At a market price of $5 your artisanal pencil business maximizes profits by producing 484 pencils per day. When you produce this quantity of pencils per day, your average cost per unit is $4. What is your total revenue per day? S What is your total cost per day? S What is your daily profit? SSuppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]Question 3 The following graph shows the price, marginal cost, and average cost curves for a firm. MC Price (RM) ATC 40 27 16 12 MR 250 500 570 Quantity (Units)
- The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost, average variable cost, average total cost, and marginal cost., now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of $25 each. a. What will be the company’s profits or losses? b. How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? c. At the given quantity and price, is the marginal unit produced adding to profits?The graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the perfectly competitive pear market. $7 MC ATC AVC 100 200 300 400 500 600 700 800 Pounds of Peara (a) If the market price for a pear is $5, how many pears would Paola produce to maximize her profit? [ Select] (b) At a $5 market price, what is the maximum profit (or minimal loss) Paola would earn? [Select] Price of Pears $6 $5 34 $3 $2 S >ATC Price MC AVC 8 4 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. Assume that all frms in the industry have identical cost curves. The price in this market in the long run is S K 11/21 > o SUBMIT ANSWER 8OF 21QUESTIONS COMPLETED MacBook Pro
