Please solve only B 4. (a) A micro-entrepreneur produces caps and hats for women. The output-cost data of thebusiness is reproduced below:OutputTotal Cost50890| 1009201501000| 20012602501470|30018503502410Using the above data estimate total cost equation and determine the average and marginalcost functions. Determine the output rate that will minimize average cost and the per-unitcost at that rate of output. Based on your findings at what price the firm would makepositive economic profit and what price it would earn negative economic profit.(b) Complete the following table. Using the following cost data how would you estimatethe short run supply curve. If there are 20 firms in the industry, what would be the industrysupply?VCTCAFCAVCATCMCOUTPUTFC5010102570450.67700.4105501351100.451551700.671801401801500.56

The perfect competition is a market form which shows a large number of buyers and sellers of a…

(b) Complete the following table. Using the following cost data how would you estimate the short run supply curve. If there are 20 firms in the industry, what would be the industry supply? vc TC AFC AVC ATC MC OUTPUT FC 50 10 10 25 70 45 0.67 70 0.4 105 50 135 110 155 0.45 170 0.67 180 140 180 150 0.56

(b) Complete the following table. Using the following cost data how would you estimate the short run supply curve. If there are 20 firms in the industry, what would be the industry supply? vc TC AFC AVC ATC MC OUTPUT FC 50 10 10 25 70 45 0.67 70 0.4 105 50 135 110 155 0.45 170 0.67 180 140 180 150 0.56

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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