Refer to the table below. Note that the first columnshows variable costs.Quantity Cost012356(in dollars) Costs015356090Fixed Total AverageCostsTotal Costs(in (in (in dollarsdollars) per unit)dollars)16040 4040 55 55:40 75 37.540 100125 4033.340 130 32.5165 3340 200 33.3Average VariableCosts (in dollars perunit)1517.52022.52526.6MarginalCosts(in dollarsper unit)152025303540If the firm produces 5 units that it sells at a price of$30.00 each, what will its profits or losses equal?losses equal $15profts equal $15profts equal $25losses equal $25

The firm will produce where the marginal revenue is equal to marginal cost to maximize its profit.…

Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6 (in dollars) Costs 0 15 35 60 90 Fixed Total Average Average Variable Costs Total Costs Costs (in dollars per (in (in (in dollars unit) dollars) dollars) per unit) 160 40 40 40 55 55 40 75 37.5 40 100 125 40 40 130 32.5 165 33 : 33.3 20 40 200 33.3 15 17.5 22.5 25 26.6 Marginal Costs (in dollars per unit) 15 20 25 30 35 40 If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25

Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6 (in dollars) Costs 0 15 35 60 90 Fixed Total Average Average Variable Costs Total Costs Costs (in dollars per (in (in (in dollars unit) dollars) dollars) per unit) 160 40 40 40 55 55 40 75 37.5 40 100 125 40 40 130 32.5 165 33 : 33.3 20 40 200 33.3 15 17.5 22.5 25 26.6 Marginal Costs (in dollars per unit) 15 20 25 30 35 40 If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...

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