(1) The cost of producing 2000 Nickel-Cadmium batteries is as follows: Labor cos

Question

(1) The cost of producing 2000 Nickel-Cadmium batteries is as follows: Labor cost Rent on Machines Rent on Factory- shed Normal Profit Lump-sum tax Calculate: (a) AFC- (b) Break-even price (Price at which economic profit is zero) (d) Shutdown price = (e) If the market price is $8.00 per battery, Economic Profit / Loss $2000 = $3500 $3000 $ 1 000 Fuel cost Packaging etc = $450 Advertising $500 Raw material $800 = $250 = $500 AVC = (2) Complete the table: TR MR TC AC MC 20 18 16 10 3 4 12 10 12 20 Find the market equilibrium P and Q and Profit if any.

Explanation / Answer

2)

FOrmula used = TR = P * Q  

MR = TRn - TRn-1 / Qn-Qn-1

TC = MCn+MCn+1

AC = TC/ Q

THe equilbruim price is $14 and quantity is 4. ( because at this price and quantity, MR=MC.and we know that MR=MC is profit maximizing output condition)

PRofit = TR-TC

PRofit = 56-28 = $28

1) PLease upload it again. ( its against chegg policy)

Q P TR MR TC AC MC 1 20 20 20 10 10 10 2 18 36 16 14 7 4 3 16 48 12 20 6.7 6 4 14 56 8 28 7 8 5 12 60 4 40 8 12 6 10 60 0 60 10 20

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