Barrels of Average Oil Marginal Marginal Total Produced Revenue Cost Costs $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 30.00 $ 4.00 $ 34.00 $ 6.00 $ 40.00 $ 77.00 $ 17.00 $ 17.00 $ 17.00 $ 23.00 $ 18.20 1 2 3 4 5 6 $ 29.00 $ 20.00

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18 IV 16 III 14 E 12 %3D 10 8 4. 0246810 12 14 16 18 20 22 24 26 2830 32 34 Quantity 32. The marginal cost curve is labeled:

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Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC MC 0         1 $60 $45 $105 $45 2 $30 $42.50 $72.50 $40 3 $20 $40 $60 $35 4 $15 $37.50 $52.50 $30 5 $12 $37 $49 $35 6 $10 $37.50 $47.50 $40 7 $8.57 $38.57 $47.14 $45 8 $7.50 $40.63 $48.13 $55 9 $6.67 $43.33 $50 $65 10 $6.00 $46.50 $52.50 $75 In the table below, complete the short run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3) 1 2 3 4 Price Quantity supplied, single firm Profit (+) or loss (-) Quantity supplied, 1500 firms $26       $32       $38       $41       $46       $56       $66

Burger Prince is considering opening a new restaurant in Colton, Loma Linda, or Upland. The following fixed and variable cost data have been assembled. Variable Costs per customer Fixed Cost per year Labor Location Colton $200,000 $0.40 Loma Linda $180,000 $0.75 Upland $170,000 $1.00 Over what range of annual demand is each facility going to have a competitive advantage? 3. Material $0.20 $0.25 $1.00 Overhead $0.40 $0.75 $1.00

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