A computer company produces affordable, easy-to-use home computer systems and has fixed costs of Rs.250 and...
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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of Rs.250 and price of the product is 500. The marginal cost of producing computers is Rs.700 for the first computer, Rs.250 for the second, Rs.300 for the third, Rs.350 for the fourth, Rs.400 for the fifth, Rs.450 for the sixth, and Rs.500 for the seventh. A Create a table that shows the company's output, Average Fixed Cost (AFC), Total Cost (TC), Marginal Cost (MC), Average Cost (AC), Variable Cost (VC), Average Variable Cost (AVC), Total Revenue (TR), Marginal Revenue (MR), Average Revenue (AR) and profit (). (5 marks) If the company sells the computers for Rs.500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, TC, TR, MR, AR and AVC curves to illustrate your answer and show the profit or loss. (5 marks) B. If the firm sells the computers for Rs.300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, TC, TR, MR, AR and AVC curves to illustrate your answer and show the profit or loss. (5 marks) C. A computer company produces affordable, easy-to-use home computer systems and has fixed costs of Rs.250 and price of the product is 500. The marginal cost of producing computers is Rs.700 for the first computer, Rs.250 for the second, Rs.300 for the third, Rs.350 for the fourth, Rs.400 for the fifth, Rs.450 for the sixth, and Rs.500 for the seventh. A Create a table that shows the company's output, Average Fixed Cost (AFC), Total Cost (TC), Marginal Cost (MC), Average Cost (AC), Variable Cost (VC), Average Variable Cost (AVC), Total Revenue (TR), Marginal Revenue (MR), Average Revenue (AR) and profit (). (5 marks) If the company sells the computers for Rs.500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, TC, TR, MR, AR and AVC curves to illustrate your answer and show the profit or loss. (5 marks) B. If the firm sells the computers for Rs.300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, TC, TR, MR, AR and AVC curves to illustrate your answer and show the profit or loss. (5 marks) C.
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1 Fixed cost 250 Total cost Variable cost Fixed cost Marginal cost is change in total cost AFC Fixed ... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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