Show all your calculations where appropriate. Round your answers up to 2 decimal places. Question6 The following table shows partial cost information of White T-shirt Manufacturing Company. The T-shirt market is a perfectly competitive market. Average variable cost Total fixed cost Quantity $70 $10 $70 1 $15 $70 $20 $70 $25 $70 $32 $70 $40 $70 6. The market price of T-shirt is $60 each. At what quantity should the company produce to maximize profit/minimize loss? Explain A. your answer. Calculate the profit or loss of the company if it produces at the quantity that maximizes B. profit/minimize loss. C. Is the current situation in a long-run equilibrium? Explain you answer. At what quantity is the company's Efficient Scale? Explain your answer. D. 3. 4-

Show all your calculations where appropriate. Round your answers up to 2 decimal places. Question6 The following table shows partial cost information of White T-shirt Manufacturing Company. The T-shirt market is a perfectly competitive market. Average variable cost Total fixed cost Quantity $70 $10 $70 1 $15 $70 $20 $70 $25 $70 $32 $70 $40 $70 6. The market price of T-shirt is $60 each. At what quantity should the company produce to maximize profit/minimize loss? Explain A. your answer. Calculate the profit or loss of the company if it produces at the quantity that maximizes B. profit/minimize loss. C. Is the current situation in a long-run equilibrium? Explain you answer. At what quantity is the company's Efficient Scale? Explain your answer. D. 3. 4-

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4.7P

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