Basketball Production Cost TableOutput per DayTotal CostFixed CostVariable CostAverage Total CostAverage Variable CostMarginal Cost0$10.00 1000001$15.0010515552$17.50107.508.753.752.503$22.501012.507.504.1754$30.0010207.5057.505$40.00103086106$52.501042.508.757.0812.507$67.501057.509.648.21158$85.00107510.639.3817.509$105.00109511.6710.5620If the market equilibrium price is $12.50, how many basketballs will Alfréd produce, what price will be charged, and how much profit or loss will occur?Answer these same questions if the market equilibrium price is $5.00.What prices represent the short-run shutdown and long-run entry/exit points?

Profits are the excess of revenue receipts over the costs incurred by the firm. These are calculated…

Answered: Basketball Production Cost Table…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Basketball Production Cost Table
Output per Day	Total Cost	Fixed Cost	Variable Cost	Average Total Cost	Average Variable Cost	Marginal Cost
0	$10.00	10	0	0	0	0
1	$15.00	10	5	15	5	5
2	$17.50	10	7.50	8.75	3.75	2.50
3	$22.50	10	12.50	7.50	4.17	5
4	$30.00	10	20	7.50	5	7.50
5	$40.00	10	30	8	6	10
6	$52.50	10	42.50	8.75	7.08	12.50
7	$67.50	10	57.50	9.64	8.21	15
8	$85.00	10	75	10.63	9.38	17.50
9	$105.00	10	95	11.67	10.56	20

If the market equilibrium price is $12.50, how many basketballs will Alfréd produce, what price will be charged, and how much profit or loss will occur?
Answer these same questions if the market equilibrium price is $5.00.
What prices represent the short-run shutdown and long-run entry/exit points?

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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