Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost per quantity produced: Total Cost Fixed Cost Variable Cost Quantity (Q) (FC) (TC) TC-FC+VC (VC) 60 60 60 45 105 60 85 145 180 210 60 120 60 150 185 60 245 6. 60 225 285 60 60 7 270 330 385 450 525 325 60 390 10 60 405 The market dictates Hampton Inc. sells soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost per quantity produced: Total Cost Fixed Cost Variable Cost Quantity (Q) (FC) (TC) TC-FC+VC (VC) 60 60 60 45 105 60 85 145 180 210 60 120 60 150 185 60 245 6. 60 225 285 60 60 7 270 330 385 450 525 325 60 390 10 60 405 The market dictates Hampton Inc. sells soap at a retail price of $56. At what quantity will Hampton Inc. produce? Why?
Chapter24: Perfect Competition
Section: Chapter Questions
Problem 5E
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Transcribed Image Text:Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost per
quantity produced:
Total Cost
(TC)
TC-FC+VC
Fixed Cost
Variable Cost
Quantity (Q)
(FC)
(VC)
60
60
1
60
45
105
60
85
145
3
60.
120
180
4
60
150
210
60
185
245
6
60
225
285
270
325
390
465
60
330
60
385
60
450
10
60
525
The market dictates Hampton Inc. sells its soap at a retail price of $56. At what quantity will Hampton Inc.
produce? Why?
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