xYoMy Factory Has Fixed Co Chegg . Save up to 90% ×Ya Assignment 3.2: Product/X
ID: 1174449 • Letter: X
Question
xYoMy Factory Has Fixed Co Chegg . Save up to 90% ×Ya Assignment 3.2: Product/X ddictic Do smartphones haw We Need to Talk Abc n Teen Depression, Suiis Smartphone and s Two points for each correct answer. It may be easier to copy and paste this table into your text entry Q. Output AFC AVC ATC MC $300 S 300 100 400 100 150 75 225 50 170 60 75 73 148 80 140 110 140 140 100 70 4 60 80 6 50 90 43 103 146 80 38 119 33 138 30 160 156 230 171290 190 360 10 1. How much is fixed cost (TFC)? For the following questions, first check: a) is P greater than or equal to, AVC at any level of output? If not, do not produce. You will lose only your fixed cost (TFC) The total fix cost is $300 in each output of units. If you CAN cover AVC for some level of output, you can produce and want to now get MC as close to MR (which in this case price) without exceeding it. Produce that quantity. If you can't cover your total costs, you will minimize your losses. If you CAN cover your total costs (and therefore earn an economic profit), you will maximize your profit.Explanation / Answer
1. The fixed cost is $300 per unit.
The firm will produce an output level where P = MC.
2. When P = 50, the firm should produce 2 units of output but AVC > P here. Thus, it won't produce any output at this price level.
3. When P = 105, the firm will 4 units of output since at this output Price is greater or equal to MC. Also, P>AVC.
4. When P = 145, the firm will 6 units of output since at this output Price is greater or equal to MC. Also, P>AVC.
5. When P = 190, the firm will 7 units of output since at this output Price is greater or equal to MC. Also, P>AVC.
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