Ali is operating his firm under a perfectly competitive industry. The fixed cost of his firm per day is TK 100. The variable cost depends on the labour wage and quantity of the commodity produced. The following tables shows the variable cost and quantity of the output produced- Quantity Variable Cost (TK) Total Cost (TK) 100 10 200 300 20 300 400 30 480 580 40 700 800 50 1000 1100 a. Calculate the average variable, average total and marginal cost for each quantity of output. b. Calculate the break-even price and what is the shutdown price from the table? c. Suppose per unit price of the commodity charged by Ali is TK 17, do you think Ali will

Ali is operating his firm under a perfectly competitive industry. The fixed cost of his firm per day is TK 100. The variable cost depends on the labour wage and quantity of the commodity produced. The following tables shows the variable cost and quantity of the output produced- Quantity Variable Cost (TK) Total Cost (TK) 100 10 200 300 20 300 400 30 480 580 40 700 800 50 1000 1100 a. Calculate the average variable, average total and marginal cost for each quantity of output. b. Calculate the break-even price and what is the shutdown price from the table? c. Suppose per unit price of the commodity charged by Ali is TK 17, do you think Ali will

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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