1. How much is fixed cost (TFC)? For the following questions, first check: a) is P greater than or equal to, AVC at any level of output? If not, do not produce. You will lose only your fixed cost (TFC) If you CAN cover AVC for some level of output, you can produce and want to now get MC as close to MR (which in this case = price) without exceeding it. Produce that quantity. If you can't cover your total costs, you will minimize your losses. If you CAN cover your total costs (and therefore earn an economic profit), you will maximize your profit. 2. If the price is $50 per unit, how many would we produce? 3. If price is $105 per unit

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
icon
Related questions
Question
6.
50
90
140
140
7
43
103
146
182
38
119
156
234
9.
33
138
171
283
10
30
160
h90
361
1. How much is fixed cost (TFC)?
For the following questions, first check: a) is P greater than or equal to, AVC at any
level of output? If not, do not produce. You will lose only your fixed cost (TFC)
If you CAN cover AVC for some level of output, you can produce and want to now get
MC as close to MR (which in this case = price) without exceeding it. Produce that
quantity. If you can't cover your total costs, you will minimize your losses. If you CAN
cover your total costs (and therefore 'earn an economic profit), you will maximize'your
profit.
2. If the price is $50 per unit, how many would we produce?
3. If price is $105 per unit
4. If price is $145 per unit
5. If price is $190 per unit
Transcribed Image Text:6. 50 90 140 140 7 43 103 146 182 38 119 156 234 9. 33 138 171 283 10 30 160 h90 361 1. How much is fixed cost (TFC)? For the following questions, first check: a) is P greater than or equal to, AVC at any level of output? If not, do not produce. You will lose only your fixed cost (TFC) If you CAN cover AVC for some level of output, you can produce and want to now get MC as close to MR (which in this case = price) without exceeding it. Produce that quantity. If you can't cover your total costs, you will minimize your losses. If you CAN cover your total costs (and therefore 'earn an economic profit), you will maximize'your profit. 2. If the price is $50 per unit, how many would we produce? 3. If price is $105 per unit 4. If price is $145 per unit 5. If price is $190 per unit
Q. Output
AFC
AVC
ATC
MC
0.
$4
---
1
300
100
400
100
150
75
225
50
100
70
170
60
4.
75
73
148
82
60
80
140
108
50
90
140
140
7
43
103
146
182
8.
38
119
156
234
9.
33
138
171
283
10
30
160
190
361
1. How much is fixed cost (TFC)?
For the following questions, first check: a) is P greater than or equal to, AVC at any
level of output? If not, do not produce. You will lose only your fixed cost (TFC)
If you CAN cover AVC for some level of output, you can produce and want to now get
MC as close to MR (which in this case = price) without exceeding it. Produce that
quantity. If you can't cover your total costs, you will minimize your losses. If you CAN
cover your total costs (and therefore earn an economic profit), you will maximize your
profit,
%24
Transcribed Image Text:Q. Output AFC AVC ATC MC 0. $4 --- 1 300 100 400 100 150 75 225 50 100 70 170 60 4. 75 73 148 82 60 80 140 108 50 90 140 140 7 43 103 146 182 8. 38 119 156 234 9. 33 138 171 283 10 30 160 190 361 1. How much is fixed cost (TFC)? For the following questions, first check: a) is P greater than or equal to, AVC at any level of output? If not, do not produce. You will lose only your fixed cost (TFC) If you CAN cover AVC for some level of output, you can produce and want to now get MC as close to MR (which in this case = price) without exceeding it. Produce that quantity. If you can't cover your total costs, you will minimize your losses. If you CAN cover your total costs (and therefore earn an economic profit), you will maximize your profit, %24
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 1 images

Blurred answer
Knowledge Booster
Learner's Curve
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning