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(The Short-Run Firm Supply Curve) Use the following data to answer the questions below: Q VC MC AVC 1 $10 ____ ____ 2 $16 ____ ____ 3 $20 ____ ____ 4 $25 ____ ____ 5 $31 ____ ____ 6 $38 ____ ____ 7 $46 ____ ____ 8 $55 ____ ____ 9 $65 ____ ____ a. Calculate the marginal cost and average variable cost for each level of production. b. How much would the firm produce if it could sell its product for $5? For $7? For $10? c. Explain your answers. d. Assuming that its fixed cost is 53, calculate the firm’s profit at each of the production levels determined in part (b).

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ECON: MICRO4 (New, Engaging Titles...

4th Edition
William A. McEachern
Publisher: Cengage Learning
ISBN: 9781285423548
BuyFind

ECON: MICRO4 (New, Engaging Titles...

4th Edition
William A. McEachern
Publisher: Cengage Learning
ISBN: 9781285423548

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Chapter
Section
Chapter 8, Problem 4.7PA
Textbook Problem

(The Short-Run Firm Supply Curve) Use the following data to answer the questions below:

Q VC MC AVC
1 $10 ____ ____
2 $16 ____ ____
3 $20 ____ ____
4 $25 ____ ____
5 $31 ____ ____
6 $38 ____ ____
7 $46 ____ ____
8 $55 ____ ____
9 $65 ____ ____

a. Calculate the marginal cost and average variable cost for each level of production.

b. How much would the firm produce if it could sell its product for $5? For $7? For $10?

c. Explain your answers.

d. Assuming that its fixed cost is 53, calculate the firm’s profit at each of the production levels determined in part (b).

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