a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output.

a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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Question

A Milton company is a clothing company, below is a table that shows the production and
that costs of this company that works in competitive market in short run;
Q
| 0
1.
2
TR
MR
TVC
TC
TF
AVC
ATC
AFC
MC
0.
8.
8.
12
20
15
23
16
24
4.
17.4
25.4
20
28
24
32
32
40
64
56
a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in
your calculations.
b. Show P, ATC,AVC,MC In the same graph
c. What is the output level that should this firm produce to maximize its profits?
calculate the amount of profits at this level of output.
d. Determine the shutdown price and calculate the profits/loss at this price.

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