Refer to the table below. Note that the first column shows variable costs. Quantity Cost Fixed Total Average (in dollars) Costs Costs Total Costs (in (in (in dollars unit) dollars) per unit) dollars) 1 2 3 4 50 6 0 15 40 35 60 90 40 160 40 40 100 40 .. 75 37.5 55 40 130 32.5 125 40 165 33 200 33.3 33.3 Average Variable Costs (in dollars per : 15 17.5 20 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? Olosses 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 Fixed Total Average (in dollars) Costs Costs Total Costs (in (in (in dollars unit) dollars) per unit) dollars) 1 2 3 4 50 6 0 15 40 35 60 90 40 160 40 40 100 40 .. 75 37.5 55 40 130 32.5 125 40 165 33 200 33.3 33.3 Average Variable Costs (in dollars per : 15 17.5 20 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? Olosses equal $15 profts equal $15 profts equal $25 losses equal $25
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
Related questions
Question
Transcribed Image Text:Refer to the table below. Note that the first column
shows variable costs.
Quantity Cost Fixed Total Average Average Variable
(in dollars) Costs Costs
Total Costs Costs (in dollars per
0
1
2
3
4
LO
5
6
0
15
35
60
90
125
160
(in (in (in dollars unit)
dollars)
dollars) per unit)
40
40
40
40
55
75 37.5
40 100 33.3
40 130 32.5
40 165 33
40 200 33.3
:
15
17.5
20
22.5
25
26.6
Marginal
Costs
(in dollars
per unit)
:
15
20
25
30
35
a
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
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