In the table below, the production quantities and total production costs at various production quantities are shown.
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Question:
In the table below, the production quantities and total production costs at various production quantities are shown. For example, fixed costs are IDR 10 thousand.
Production Quantity (Units) | Price (Thousand Rupiah) | Total Cost (thousand rupiah) |
1 2 3 4 5 6 7 8 | 20 18 16 14 12 10 8 6 | 21 31 39 45 49 55 70 100 |
Calculate:
Average cost (AC)
Average fixed cost (AFC)
Average changing cost (AVC)
Marginal cost (MC)
Draw the AC, AFC, AVC, and MC curves
Using the MC = MR approach, determine the level of production that maximizes profits and describe the equilibrium state achieved
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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