4. A firm's cost curves are given in the following table.TCTFCTVCAVCATCMCRevenueProfitRO100RO100-100114010040401404060-8016010060308020120-4031701007023.3356.66101801041821008220.545.5122405851951009519391330010562201001202036.6625360140725010015021.4235.7130420170829010019023.7536.254048019034024026.637505420010400100300304060600200a. Complete the table.b. Graph AVC, ATC and MC on the same graph. What is the relationship betweenthe 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 shortrun? How much are the total profits?

The firms have a consideration regarding allowing sequential estimations about the profit and the…

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 2 160 100 60 30 80 20 120 -40 3 170 100 70 23.33 56.66 10 180 10 182 100 82 20.5 45.5 12 240 58 195 100 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 40 480 190 340 100 240 26.66 37.77 50 540 200 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?

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 2 160 100 60 30 80 20 120 -40 3 170 100 70 23.33 56.66 10 180 10 182 100 82 20.5 45.5 12 240 58 195 100 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 40 480 190 340 100 240 26.66 37.77 50 540 200 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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

See similar textbooks

Similar questions

What is die difference between accounting and economic profit?
How does fixed cost affect marginal cost? Why is this relationship important?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
What are explicit and implicit costs?
What are diminishing marginal returns as they relate to costs?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980
Your cousin Vinnie owns a painting company withfixed costs of $200 and the following schedule forvariable costs:Quantity ofHousesPainted perMonth 1 2 3 4 5 6 7VariableCosts$10 $20 $40 $80 $160 $320 $640Calculate average fixed cost, average variable cost, andaverage total cost for each quantity. What is the efficient scale of the painting company?
The Trouser Company has fixed costs of 2,400 per week. In addition, we have some information about its total costs of production.Output020406080100120140TC2400530067007200770091001200017400a) For each of the output levels in the table, calculate the Trouser Company’s average variable costs (AVC), average (total) cost (AC) and marginal cost (MC).b) Sketch a diagram showing the marginal cost curve, the average variable cost curve, and the firm’s short run supply curve. c) Explain how the firm would maximise its profit, assuming that it faces conditions of perfect competition, in the short run.
Output TFC TVC TC MC АТС А 25 25 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 4 25 110 33.75 F 5 25 160 50 What is the average total cost at point F? 37 47 35 Cannot be determined.
Output TFC TVC TC MC АТС A 25 25 ---- -- ---- -- B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the total cost at point E? 135 125 185 Cannot be determined