Pan De Salle, a pan de sal store owned by a La Sallian, has recorded its total costs (Php thousand) at different quantities of sales in Table 1. PDS is in an almost Perfect Competition. Each piece of bread is priced Php 6. (Legend: Q=quantity of production/sales MC=Marginal Cost What is the AVC (in Peso) at 20,000 units of production/sales? What is the AC (in Peso) at 25,000 units of production/sales What is the MC (in Peso) at 30,000 units of production/sales At what quantity is the maximum profit achieved? What is the break-even price (in Peso)? Approximate from table of Solution [Select] Table 1 What is the shutdown price (in Peso) ? Approximate from table. of Solution [Select] Quantity(000) TC(P000) 0 5 10 15 20 25 Cost Data 30 35 40 70 82 94 110 130 160 200 Price=6 VC=Variable Cost AVC=ave. variable cost AC-Ave.Cost Revenue (POOO) Profit(P000) VC(POOO) 30 42 54 70 90 120 160 Table of Solution QMC AC 5 10 15 TC=Total Cost 20 25 30 35 AVC

Pan De Salle, a pan de sal store owned by a La Sallian, has recorded its total costs (Php thousand) at different quantities of sales in Table 1. PDS is in an almost Perfect Competition. Each piece of bread is priced Php 6. (Legend: Q=quantity of production/sales MC=Marginal Cost What is the AVC (in Peso) at 20,000 units of production/sales? What is the AC (in Peso) at 25,000 units of production/sales What is the MC (in Peso) at 30,000 units of production/sales At what quantity is the maximum profit achieved? What is the break-even price (in Peso)? Approximate from table of Solution [Select] Table 1 What is the shutdown price (in Peso) ? Approximate from table. of Solution [Select] Quantity(000) TC(P000) 0 5 10 15 20 25 Cost Data 30 35 40 70 82 94 110 130 160 200 Price=6 VC=Variable Cost AVC=ave. variable cost AC-Ave.Cost Revenue (POOO) Profit(P000) VC(POOO) 30 42 54 70 90 120 160 Table of Solution QMC AC 5 10 15 TC=Total Cost 20 25 30 35 AVC

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 9TY

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