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A Company manufactures rotary drilling bits. The fixed costs are estimated at $30. 4.1. Calculate and fill in the Table below: the total cost, average
A Company manufactures rotary drilling bits. The fixed costs are estimated at $30. 4.1. Calculate and fill in the Table below: the total cost, average variable cost, average total c.nst. and marninal c.nst. (8) Based on your answers, and considering that the firm produces a quantity of 5 units that it sells for a price of $25 each: 4.2. Calculate the Company profits or losses 4.3. Sate whether the company is making or losing money at this price and justify your answer 4.4. At the given level of ouput and price, assess if the marginal unit produced is adding to profits or not. (3)
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