Table 1 shows the total cost schedule for a competitive firm. Price per unit of output is £7. Quantity 0 1 2 3 4 5 6 7 8 Total Cost 15 25 30 34 38 45 55 70 100 Table 1 BUS017/146 (2023) Page 3 A) Calculate average total cost (ATC=TC/Q), marginal cost (MC=ATC/AQ) and marginal revenue (MR-ATR/AQ) for each level of output. B) Plot ATC, MC and MR on a graph and mark the profit-maximising (loss minimising) output. At what output level is profit maximised (loss minimised)? C) How much profit/loss is made at the optimum level of output?

Table 1 shows the total cost schedule for a competitive firm. Price per unit of output is £7. Quantity 0 1 2 3 4 5 6 7 8 Total Cost 15 25 30 34 38 45 55 70 100 Table 1 BUS017/146 (2023) Page 3 A) Calculate average total cost (ATC=TC/Q), marginal cost (MC=ATC/AQ) and marginal revenue (MR-ATR/AQ) for each level of output. B) Plot ATC, MC and MR on a graph and mark the profit-maximising (loss minimising) output. At what output level is profit maximised (loss minimised)? C) How much profit/loss is made at the optimum level of output?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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