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e table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that oduces children's mittens in a competitive market. mitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 2.00 Average Total Cost (dellars) $2.2 2.17 25 30 35 2.45 2.21 40 3.55 2.38 2.56 2.85 45 4.00 5.50 6.00 8.50 50 55 3.14 60 3.58 nstructions: In part a, enter your answer as a whole number. In parts b, c, and d, round your answers to two decimal places .If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to haximize its profits? ]pairs of mittens p. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? $1 3.28 E. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens?

e table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that oduces children's mittens in a competitive market. mitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 2.00 Average Total Cost (dellars) $2.2 2.17 25 30 35 2.45 2.21 40 3.55 2.38 2.56 2.85 45 4.00 5.50 6.00 8.50 50 55 3.14 60 3.58 nstructions: In part a, enter your answer as a whole number. In parts b, c, and d, round your answers to two decimal places .If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to haximize its profits? ]pairs of mittens p. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? $1 3.28 E. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens?

Managerial Economics: A Problem Solving Approach
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
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
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he table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that roduces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $2.2 2.17 2.21 25 30 2.00 35 2.45 3.55 4.00 40 2.38 45 2.56 2.85 50 5.50 55 6.00 3.14 60 8.50 3.58 Instructions: In part a, enter your answer as a whole number. In parts b, c. and d, round your answers to two decimal places. a. If the market price of children's mittens is $6.00 per pair, how many palrs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? %24 3.28 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? d. What are Smitten's weekly profits if the market price is $5.50 per pair and the firm produces the profit-manimizing quantity of mittens? 6 of 10 Next> < Prev
Transcribed Image Text:he table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that roduces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $2.2 2.17 2.21 25 30 2.00 35 2.45 3.55 4.00 40 2.38 45 2.56 2.85 50 5.50 55 6.00 3.14 60 8.50 3.58 Instructions: In part a, enter your answer as a whole number. In parts b, c. and d, round your answers to two decimal places. a. If the market price of children's mittens is $6.00 per pair, how many palrs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? %24 3.28 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? d. What are Smitten's weekly profits if the market price is $5.50 per pair and the firm produces the profit-manimizing quantity of mittens? 6 of 10 Next> < Prev
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