Question: Given the below Data , and assuming total fixed cost is 60 Quantity Total variable cost 0 0 1 25 2 40 3 60 4
Given the below Data , and assuming total fixed cost is 60
| Quantity | Total variable cost |
| 0 | 0 |
| 1 | 25 |
| 2 | 40 |
| 3 | 60 |
| 4 | 90 |
| 5 | 130 |
| 6 | 185 |
How many units should the firm produce at a price of $30 and a price of $55?
What is the total revenue and total cost at each price ?
What is the profit at each price level ?
Indicate whether you agree or disagree with the following statements. Explain your answers:
Increasing retunrs to scale refers to a sitiuation where an increase in a firms scale of production leads to higher costs per unit produced.
Constant returns to scale refers to a sitiuation where an increase in a firms scale of production has no effect on costs per unit produced
Decreasing returns to scale refers to a sitiuation where an increase in a firms scale of production leads to lower costs per unit produced.
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