16. Brenda's Balloon Shop is a price taker, and the table below shows its costs of...

Transcribed Image Text:

16. Brenda's Balloon Shop is a price taker, and the table below shows its costs of production. Use it to answer the following questions: Output (balloons Total Cost (dollar per hour) per hour) 0 4 1 7 2 8 3 12.4 4 17.5 5 23 6 29 a. How much is Brenda's total fixed cost? b. Calculate the marginal cost of increasing production from 4 balloons to 5 balloons an hour. c. Calculate Brenda's profit-maximizing output if the market price is $5.50 per balloon. d. At the market price of $5.50 per balloon, compute Brenda's profit/loss. 16. Brenda's Balloon Shop is a price taker, and the table below shows its costs of production. Use it to answer the following questions: Output (balloons Total Cost (dollar per hour) per hour) 0 4 1 7 2 8 3 12.4 4 17.5 5 23 6 29 a. How much is Brenda's total fixed cost? b. Calculate the marginal cost of increasing production from 4 balloons to 5 balloons an hour. c. Calculate Brenda's profit-maximizing output if the market price is $5.50 per balloon. d. At the market price of $5.50 per balloon, compute Brenda's profit/loss.

Answer rating: 100% (QA)

Lets go through each question step by step a Brendas total fixed cost can be determined by looking a... View the full answer