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 a. Complete the table above b. Compare the average total cost and the marginal cost and explain the relationship c. Describe the methods that can be used to determine where profit is maximized?

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 a. Complete the table above b. Compare the average total cost and the marginal cost and explain the relationship c. Describe the methods that can be used to determine where profit is maximized?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4PA

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