The cost and revenue structures for the only producer of X, Inc., are shown in this table.
Quantity
TVC
TC
TFC
ATC
MC
Price
TR
MR
0
0
15
----
----
20
0
----
1
11
11
17.5
2
32
30
3
36.6
13.5
4
25
48
5
44.5
10.5
6
36
9
7
45.2
8
a. Using the formulas that you are familiar with complete the cost and revenue structure in the table.
b. What are the firm's fixed costs? ______
c. What is the firm's s profit maximizing position? P = _____, Q = _____.
d. At each price level is the demand for product X elastic or inelastic? How do you know?
e. What is the profit or loss at the equilibrium position?
f. Is this firm producing at the lowest possible ATC? At what output level is the minimum point on the ATC?
g. Why is the firm not producing at the cheapest output level?
The cost and revenue structures for the only producer of X, Inc., are shown in this table.
|
Quantity |
TVC |
TC |
TFC |
ATC |
MC |
Price |
TR |
MR |
|
|
0 |
0 |
15 |
---- |
---- |
20 |
0 |
---- |
||
|
1 |
11 |
11 |
17.5 |
||||||
|
2 |
32 |
30 |
|||||||
|
3 |
36.6 |
13.5 |
|||||||
|
4 |
25 |
48 |
|||||||
|
5 |
44.5 |
10.5 |
|||||||
|
6 |
36 |
9 |
|||||||
|
7 |
45.2 |
8 |
a. Using the formulas that you are familiar with complete the cost and revenue structure in the table.
b. What are the firm's fixed costs? ______
c. What is the firm's s profit maximizing position? P = _____, Q = _____.
d. At each price level is the demand for product X elastic or inelastic? How do you know?
e. What is the profit or loss at the equilibrium position?
f. Is this firm producing at the lowest possible ATC? At what output level is the minimum point on the ATC?
g. Why is the firm not producing at the cheapest output level?
Related textbook solutions
Related questions
Given following Price and Total Cost functions:
P = 120 - 7Q
TC = 40 + 70Q - 10Q2 + 0.6Q3
Where P = price, and Q is output.
Fill in the table below and answer the questions below the table.
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Q |
P |
FC |
TVC |
TC |
TR |
Profit |
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0 |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |
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9 |
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10 |
If your company's goal is to maximize profit, answer the following questions below:
What price will you charge for your product?
What quantity will you produce?
And what would be your maximum profit or minimum loss at the price and output you chose?
2. If your company's goal is to maximize total revenue, answer the following questions below:
What price will you charge for your product?
What quantity will you produce?
And what would be your maximum total revenue at the price and output you chose? (3 points)
Question 3
Given a firm with the following cost data, fill in the table below.
Q = OUTPUT TFC = Total Fixed Cost AVC = Average Variable Cost ATC = Average Total Cost TVC = Total Variable Cost MC = Marginal Cost TC = Total Cost
|
Q |
FC |
TVC |
TC |
AVC |
ATC |
MC |
|
0 |
--- |
--- |
--- |
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|
1 |
10 |
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2 |
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3 |
10 |
10 |
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4 |
