The total variable costs are
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- The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.arrow_forwardWhat two lines on a cost curve diagram intersect at the shutdown point?arrow_forward36 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost I of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Output (Q) changes from 150 to 200, Marginal Cost (MC) is equal to: Select one: a. $400 b. $8.00 c. $4.00 d. $5.00arrow_forward
- 9. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $15 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Average Variable Cost Quantity (Dollars) Average Total Cost (Dollars) 1 2 10 12 The equilibrium price is Jurrently $20. Each firm produces Total Cost Marginal Cost (Dollars) (Dollars) 15 units. units, so the total quantity supplied in the market is In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will firm will quantity demanded will , and the quantity supplied by each.arrow_forwardAnswer the question on the basis of the following demand and cost data for a specific firm. Demand Data Cost Data (1) Price (2) Price (3) Quantity Output Total Cost $ 10.50 $ 10.00 6 6 $ 61 10.00 8.85 7 7 62 9.50 8.00 8 8 64 9.00 7.00 9 9 67 8.50 6.10 10 10 72 8.00 5.00 11 11 79 7.50 4.15 12 12 86 Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will Multiple Choice fall to $4. decline to zero. increase by $6. fall by $8.arrow_forwardA firm has fixed costs of $40 and variable costs as indicated in the table below. For each level of output (total product) calculate total cost, average fixed cost, average variable cost, average total cost and marginal cost. Write your response in the table provided. b) Discuss why a firm in perfect competition will not charge a price above or below the market price.arrow_forward
- No written by hand solutionarrow_forwardThe table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Quantity of Gift Boxes 20 25 30 35 40 45 b. Total revenue = Choco Lovers Cost and Revenue TC ($) ATC ($) 5.75 5.50 5.42 c. Profit = $ 227.50 d. Profit per unit = $ 115.00 137.50 162.50 192.50 232.50 282.50 Assume the profit-maximizing price is $8 per gift box, and then answer the following questions: a. Profit-maximizing quantity = 35 gift boxes 12 5.81 6.28 MC ($) per gift box 5.00 4.50 5.00 6.00 8.00 10.00arrow_forwardc) what is the profit or loss at the profit maximizing output?arrow_forward
- Answer the question on the basis of the following demand and cost data for a specific firm. Demand Data Cost Data (1) Price (2) Price (3) Quantity Output Total Cost $12.00 $10.00 6 6 $61 11.00 8.85 7 7 62 10.00 8.00 8 8 64 9.00 7.00 9 9 67 8.00 6.10 10 10 72 7.00 5.00 11 11 79 6.00 4.15 12 12 86 With the demand schedule shown by columns (2) and (3), in long-run equilibrium A) price will equal ATC B). total cost will exceed total revenue. C) marginal cost will exceed price. D) price will equal marginal revenuearrow_forwardQuantity Price Total Fixed Costs Variale Cost Total Costs Average Variable Costs Average Total Cost Marginal Cost Total Revenue Marginal Revenue 0 35 25 0 1 35 25 20 2 35 25 25 3 35 25 35 4 35 25 52 5 35 25 80 If this firm produces a quantity of zero units, what is the total profits? What is the firm's marginal cost at a production level of two units? What is the average variable cost at a production level of five units? This firm becomes profitable producing at a quantity of ___ units. The average total cost is smallest at which level of production? At what quantity should this firm produce to maximize their profits based on your calculations? The total costs to produce four units is __________ while the average total cost to produce four units is _________.arrow_forward10. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $16 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Quantity Average Variable Cost Total Cost Marginal Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) 0 16 1 1 2 2 3 3 4 4 5 5 6 6 The equilibrium price is currently $10. Each firm produces __________ units, so the total quantity supplied in the market is _________ units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will _______ , quantity demanded will ________ , and the quantity supplied by…arrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStaxManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning