PROBLEM 1. 4 The following table represents the production costs for a single firm in the short run. QFC 0 3 s VC TC MC AFC AVC 18 Z 12 1. Find the missing values in the above Table. 2. Find the range of output for a decreasing return to scale. 3. Find the output for the minimum efficient scale (MES). ATC 18

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Chapter22: Supply: The Costs Of Doing Business
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Economics
PROBLEM 1. D
The following table represents the production costs for a single firm in the short run.
QFC VC
0
3
5
8
18
TC
24
MC AFC AVC
12
ATC
1.
Find the missing values in the above Table.
2.
Find the range of output for a decreasing return to scale.
3. Find the output for the minimum efficient scale (MES).
4. Assume the price is set at $6. Find the total profit of this firm.
5. What should the firm do in the long run?
18
Transcribed Image Text:Economics PROBLEM 1. D The following table represents the production costs for a single firm in the short run. QFC VC 0 3 5 8 18 TC 24 MC AFC AVC 12 ATC 1. Find the missing values in the above Table. 2. Find the range of output for a decreasing return to scale. 3. Find the output for the minimum efficient scale (MES). 4. Assume the price is set at $6. Find the total profit of this firm. 5. What should the firm do in the long run? 18
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