OutputAFC AVC АТС MC 1 100 40 140 40 2 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 6 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output sho the firm choose to maximize profit in the short run?

OutputAFC AVC АТС MC 1 100 40 140 40 2 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 6 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output sho the firm choose to maximize profit in the short run?

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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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

OutputAFC AVC
АТС
MC
1
100
40
140
40
50
35
85
30
3
33.33
35
68.33
35
4
25 36.25
61.25
40
5
20
38
58
45
16.67
40
56.67
50
A price taking firm has the above cost data. The price of output is $34. What level of output should
the firm choose to maximize profit in the short run?

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