The data below shows a tabulation on the production of a hypothetical product: Output (Q) Total Cost 0 25 1 32 2 38 3 42 4 48 5 58 6 67 7 78 8 98 Required: Use the data to answer the following questions: Determine Total Fixed Cost Average Variable Cost Schedule Marginal Cost Schedule Suppose this product is produced on a perfect market and the price of the commodity = 10. Determine the output Q that will maximize the profits. What is the Maximum profits achieved by the firm? (Show ALL your workings
The data below shows a tabulation on the production of a hypothetical product: Output (Q) Total Cost 0 25 1 32 2 38 3 42 4 48 5 58 6 67 7 78 8 98 Required: Use the data to answer the following questions: Determine Total Fixed Cost Average Variable Cost Schedule Marginal Cost Schedule Suppose this product is produced on a perfect market and the price of the commodity = 10. Determine the output Q that will maximize the profits. What is the Maximum profits achieved by the firm? (Show ALL your workings
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 7MC
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Question
The data below shows a tabulation on the production of a hypothetical product:
Output (Q) |
Total Cost |
0 |
25 |
1 |
32 |
2 |
38 |
3 |
42 |
4 |
48 |
5 |
58 |
6 |
67 |
7 |
78 |
8 |
98 |
Required:
Use the data to answer the following questions:
- Determine Total Fixed Cost
Average Variable Cost Schedule- Marginal Cost Schedule
Suppose this product is produced on a perfect market and the
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