Problems:Question #6: The Phantom Farms bakery produces pumpkin pies according to the followingshort run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that thebakery can only produce and sell whole pies.AVC =ATC =MC =Quantity(pies)TFC = total TVC = total TC = totalfixed cost variable costaverageaverage total marginalcostvariable costcostcost(i)same as (i)1141814.018142same as (i)(ii)2812.014103same as (i)384212.7(v)144same as (i)60(iii)15.01622same as (i)869017.218(vi)same as (i)116120(iv)2030Fill in the five missing cost numbers indicated in the table above.(i)(ii)(iii)(iv)(v)(vi)If the price of pumpkin pies is $22 per pie, how many pies should PhantomFarms produce in the short run? What profit or loss does the firm earn? Explain how youarrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profitsor losses.3

The total cost incurred by a firm operating in a market includes fixed cost and variable cost. Fixed…

Problems: Question #6: The Phantom Farms bakery produces pumpkin pies according to the following short run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that the bakery can only produce and sell whole pies. AVC = ATC = MC = Quantity TFC = total TVC= total TC= total (pies) average total marginal fixed cost variable cost average variable cost cost cost cost (i) same as (i) same as (i) same as (i) same as (i) same as (i) same as (i) 4 -- -- 1 14 18 14.0 18 14 (ii) 28 12.0 14 10 3 38 42 12.7 (v) 14 (iii) 90 4 60 15.0 16 22 17.2 (vi) 30 5 86 18 116 120 (iv) 20 Fill in the five missing cost numbers indicated in the table above. (i) (ii) (iii) (iv) (v) (vi) If the price of pumpkin pies is $22 per pie, how many pies should Phantom Farms produce in the short run? What profit or loss does the firm earn? Explain how you arrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profits or losses.

Problems: Question #6: The Phantom Farms bakery produces pumpkin pies according to the following short run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that the bakery can only produce and sell whole pies. AVC = ATC = MC = Quantity TFC = total TVC= total TC= total (pies) average total marginal fixed cost variable cost average variable cost cost cost cost (i) same as (i) same as (i) same as (i) same as (i) same as (i) same as (i) 4 -- -- 1 14 18 14.0 18 14 (ii) 28 12.0 14 10 3 38 42 12.7 (v) 14 (iii) 90 4 60 15.0 16 22 17.2 (vi) 30 5 86 18 116 120 (iv) 20 Fill in the five missing cost numbers indicated in the table above. (i) (ii) (iii) (iv) (v) (vi) If the price of pumpkin pies is $22 per pie, how many pies should Phantom Farms produce in the short run? What profit or loss does the firm earn? Explain how you arrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profits or losses.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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