I. PROBLEM SsOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output (in packs) AFC (P) AVC (P) АTC (Р) MC (P) 60.00 45.00 105.00 45.00 30.00 20.00 2 42.50 72.50 40.00 3 4 40.00 60.00 35.00 30.00 15.00 12.00 37.50 52.50 49.00 37.00 35.00 10. 37.50 47.50 00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 6.67 6.00 43.33 50.00 52.50 65.00 75.00 10 46.50 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack

I. PROBLEM SsOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output (in packs) AFC (P) AVC (P) АTC (Р) MC (P) 60.00 45.00 105.00 45.00 30.00 20.00 2 42.50 72.50 40.00 3 4 40.00 60.00 35.00 30.00 15.00 12.00 37.50 52.50 49.00 37.00 35.00 10. 37.50 47.50 00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 6.67 6.00 43.33 50.00 52.50 65.00 75.00 10 46.50 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 9E

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