Quantity 10 20 30 40 Fixed Cost 200 200 200 200 Variable Cost 50 100 300 800 Total Cost 250 300 500 1000 Based on the aforementioned chart for a company that is perfectly competitive: A) Calculate the marginal cost using X B) Determine the quantity that will maximize profits if the equilibrium price is $20. C) What kind of profit will the company make? Marginal Cost 0 5 20 X

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Quantity
10
20
30
40
Fixed Cost
200
200
200
200
Variable Cost
50
100
300
800
Total Cost
250
300
500
1000
Based on the aforementioned chart for a company that is perfectly competitive:
A) Calculate the marginal cost using X
B) Determine the quantity that will maximize profits if the equilibrium price is $20.
C) What kind of profit will the company make?
Marginal Cost
0
5
20
X
Transcribed Image Text:Quantity 10 20 30 40 Fixed Cost 200 200 200 200 Variable Cost 50 100 300 800 Total Cost 250 300 500 1000 Based on the aforementioned chart for a company that is perfectly competitive: A) Calculate the marginal cost using X B) Determine the quantity that will maximize profits if the equilibrium price is $20. C) What kind of profit will the company make? Marginal Cost 0 5 20 X
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