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- A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.Under which of the folowing examples is t likaly that the accounting profit is positive and the economic profit is negative? OA Using a restaurant you purchased to sell Menican food instead of talian food. OR It you use a diamond mine as a touriet atraction instead of using it for mining. Oc Opering a bank branch near a university campus. OD. Such a scenario, where accounting cost is positive and economic profit is negafive, is not possibie.Price and cost $4.00 3.20 2.40 1.60 0 Questraq; not sugamon Isnigiem sunsven lang jam neris MC ITAALS 25006 DMC Sorberg in ATC AVC HONDE SOM= 15152 850 1,700 MR 2,550 D Quantity a. If Elijah produces at the profit-maximizing level of output, how much is his total revenue? How much is his total cost? Briefly explain your calculations. a. How much economic profit is Elijah earning? Briefly explain your calculation.
- OutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answerText Problem 2.5c A firm's cost curves are given in the following table. TFC TVC AVC 50 0 50 150 50 180 50 50 50 9 0 1 2 3 4 5 6 7 8 9 10 TC 50 200 230 250 260 280 310 350 400 50 50 50 50 50 460 530 Suppose market price is $40. The firm will produce 200 210 230 260 - ATC - 150.00 200.00 90.00 115.00 66.67 83.33 52.50 65.00 46.00 56.00 43.33 51.67 300 42.86 350 43.75 410 45.56 480 48.00 53.00 50.00 50.00 51.11 MC - 150 30 20 10 20 30 40 50 60 70 units of output in the short run. (Enter your response as a whole number.)
- 4. A firm's cost curves are given in the following table. TC TFC TVC AVC ATC MC Revenue Profit RO100 RO100 -100 1 140 100 40 40 140 40 60 -80 160 100 60 30 80 20 120 -40 3 170 100 70 23.33 56.66 10 180 10 4 182 100 82 20.5 45.5 12 240 58 5 195 100 95 19 39 13 300 105 6 220 100 120 20 36.66 25 360 140 7 250 100 150 21.42 35.71 30 420 170 8 290 100 190 23.75 36.25 40 480 190 340 240 26.6 37 50 54 200 10 400 100 300 30 40 60 600 200 a. Complete the table. b. Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC? c. Suppose the market price is RO 60, how much will the firm products in the short run? How much are the total profits?2:08 1 .ull LTE AA A moodle.ku.edu.kw MC $19 16 13 10 160 180 210 Quantity 100 Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit- maximizing price will be IIIThe table below shows the information on Ilham Bakery. Item AmountRevenue in operating the bakery shop RM 80 000Income that could have been earned if working as an employee to others RM 7 000Utility cost RM 1 200Salary of workers RM 15 000Cost of raw materials RM 20 000 What is the economic profit?
