The image presents a table and some questions regarding the marginal cost (MC) and average total cost (ATC) for Buddies, a firm producing novelty ear buds in a competitive market, with the price set at $6.00 per pair.**Table: Buddies Production Costs**| Quantity of Ear Buds | MC ($) | ATC ($) ||----------------------|--------|--------|| 5 | - | 9.00 || 10 | 2.00 | 5.50 || 15 | 2.44 | 4.48 || 20 | 3.56 | 4.25 || 25 | 4.50 | 4.30 || 30 | 5.02 | 4.42 || 35 | 5.96 | 4.64 || 40 | 8.56 | 5.13 |**Instructions:**- In part a, enter your answer as the closest given whole number.- In parts b–d, round your answers to two decimal places.**Questions:**a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? - [ ] pairsb. At the profit-maximizing quantity, what is the total cost of producing ear buds? - $[ ]c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies' profit or loss be per week? - $[ ]d. Now assume the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds. What will Buddies' profit or loss be per week? - $[ ]e. Buddies earns a normal profit when - [ ] average cost equals average revenue at the minimum of average cost. - [ ] marginal cost equals average cost. - [ ] marginal cost equals marginal revenue at the minimum of marginal cost. - [ ] marginal cost equals average cost at the minimum of average cost.

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 9.00 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 9.00 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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