(b) The following table shows the total cost incurred by a firm in the short run....
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(b) The following table shows the total cost incurred by a firm in the short run. Output 0 Total cost ($) 120 1 300 2 400 3 480 4 600 5 800 6 1,100 (i) (ii) Calculate the average total cost and the marginal cost of all the outputs. Explain the importance of knowledge of the average total cost and the marginal cost to the producers. (16 marks) If the firm is operating in a perfectly competitive market and is able to sell any amount of its output at the price of $250 per unit, appraise the revenue and cost situations to establish the optimal quantity and calculate the profit or loss of the firm. Examine the market structure and predict the changes in the price and quantity of this firm in the long run. (14 marks) (b) The following table shows the total cost incurred by a firm in the short run. Output 0 Total cost ($) 120 1 300 2 400 3 480 4 600 5 800 6 1,100 (i) (ii) Calculate the average total cost and the marginal cost of all the outputs. Explain the importance of knowledge of the average total cost and the marginal cost to the producers. (16 marks) If the firm is operating in a perfectly competitive market and is able to sell any amount of its output at the price of $250 per unit, appraise the revenue and cost situations to establish the optimal quantity and calculate the profit or loss of the firm. Examine the market structure and predict the changes in the price and quantity of this firm in the long run. (14 marks)
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i Calculation of average total cost and marginal cost Output 0 Total Cost 120 ATC Undefined MC Undef... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
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