A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 Complete the table. Round off to the nearest dollar. At what price is the zero-profit point? At what price is the shutdown point?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 Complete the table. Round off to the nearest dollar. At what price is the zero-profit point? At what price is the shutdown point?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below.
Output |
Fixed Cost |
Variable Cost |
Total Cost |
Marginal Cost |
Average Cost |
Variable Cost |
1 |
$250 |
$700 |
$950 |
$700 |
||
2 |
$250 |
$925 |
$1175 |
$225 |
||
3 |
$250 |
$315 |
||||
4 |
$250 |
$360 |
||||
5 |
$250 |
$400 |
||||
6 |
$250 |
$450 |
||||
7 |
$250 |
$550 |
- Complete the table. Round off to the nearest dollar.
- At what price is the zero-profit point?
- At what price is the shutdown point?
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