Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day; the firm has fixed costs of $200. L Q MP MC TC ATC 0 0         1 20         2 50         3 90         4 120         5 140         6 150         7 155                           i. Complete the table above ii. Compare the average total cost and the marginal cost and explain the relationship iii. Describe the methods that can be used to determine where profit is maximized

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day; the firm has fixed costs of $200.

L

Q

MP

MC

TC

ATC

0

0

 

 

 

 

1

20

 

 

 

 

2

50

 

 

 

 

3

90

 

 

 

 

4

120

 

 

 

 

5

140

 

 

 

 

6

150

 

 

 

 

7

155

 

 

 

 

               

 

i. Complete the table above

ii. Compare the average total cost and the marginal cost and explain the relationship

iii. Describe the methods that can be used to determine where profit is maximized?

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