Fertilizer Q TFC TVC TC MC ATC AVC AFC TR MR 25 70 1300 100 8 150 10 55 220 3500 Notes: Fertilizer, Q, TFC, TVC, TC, MC, ATC, AVC and AFC refer to quantity of fertilizer (in units), quantity of output (in units), total fixed cost, total variable cost, total cost, marginal cost, average total cost, average variable cost and average fixed cost, respectively. Answer the following questions based on the Table completed: What is the marginal input cost? Answer Is the firm making a profit or loss? Is the firm operating in the long-run or in the short-run? Why?
|
Fertilizer |
Q |
TFC |
TVC |
TC |
MC |
ATC |
AVC |
AFC |
TR |
MR |
|
25 |
70 |
1300 |
|
|
|
|
|
|
|
|
|
|
100 |
|
|
|
8 |
|
|
|
|
|
|
|
150 |
|
|
|
|
|
10 |
|
|
|
|
55 |
220 |
|
|
3500 |
|
|
|
|
|
|
Notes: Fertilizer, Q, TFC, TVC, TC, MC, ATC, AVC and AFC refer to quantity of fertilizer (in units), quantity of output (in units), total fixed cost, total variable cost, total cost, marginal cost,
Answer the following questions based on the Table completed:
What is the marginal input cost?
Answer
Is the firm making a profit or loss?
Is the firm operating in the long-run or in the short-run? Why?
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