Question
Answer the remaining three questions on the basis of the information below . A profit-maximizing firm in a perfectly competitive market operates in the short
Answer the remaining three questions on the basis of the information below.
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed costs of $6,500.00 and total variable costs (TVC) as is below. The firm can only produce integer amounts of output (Q)
Q | TVC |
0 | 0.00 |
1 | 8,000.00 |
2 | 15,000.00 |
3 | 20,000.00 |
4 | 23,000.00 |
5 | 25,000.00 |
6 | 29,000.00 |
7 | 33,500.00 |
8 | 39,000.00 |
9 | 46,000.00 |
10 | 53,500.00 |
11 | 61,200.00 |
12 | 72,000.00 |
______ 5. (2.5 pts.) How much output should the firm produce if it can sell all the output it produces at a price of $4,650 per unit?
Did you show your work for every question?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started