The monthly average variable costs, average total costs, and marginal costs for Alpacky, a typical alpaca wool-manufacturing firm in Peru, are shown in the table below. All firms in the industry share the same costs as Alpacky, and the industry is in long-run equilibrium. Instructions: Round your answer to the nearest cent. The market price is $ Output (units of wool) 0 2 3 4 5 AVC ($) - 25.00 21.50 ATC ($) 35.00 26.50 19.67 23.00 19.25 21.75 19.80 21.80 MC ($) 25.00 18.00 16.00 18.00 22.00

The monthly average variable costs, average total costs, and marginal costs for Alpacky, a typical alpaca wool-manufacturing firm in Peru, are shown in the table below. All firms in the industry share the same costs as Alpacky, and the industry is in long-run equilibrium. Instructions: Round your answer to the nearest cent. The market price is $ Output (units of wool) 0 2 3 4 5 AVC ($) - 25.00 21.50 ATC ($) 35.00 26.50 19.67 23.00 19.25 21.75 19.80 21.80 MC ($) 25.00 18.00 16.00 18.00 22.00

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

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

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If the firm produces 4 units of production at a price of 8 monetary units each, and the total fixed costs (TFC) are 10 monetary units, the total variable costs (TVC) are 42 monetary units. Calculate the total economic profit (or the loss).
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