Assume that Starlight Express produces bedside tables in the perfectly competitive bedside table market.

(a)Fill in the missing values for AFC, AVC, ATC and MC in table 1.

(b)Suppose the equilibrium price in the bedside table market is $80.

How many bedside tables should Starlight Express produce, and how much profit will they make?

(c)If next week the equilibrium price of bedside tables drops to $40, should Starlight Express shut down?Explain?

(d)Assuming Starlight Express is operating in the short-run and factor prices are constant, at what output level does the law of diminishing returns set in?

ECONOMIC PRINCIPLES ASSIGNMENT - SEMESTER 2 2020 KL.docx (with instructions)(1) - Word Table Tools SELIM ANNABAYEV X File Home Insert Draw Design Layout References Mailings Review View Help EndNote X9 Design Layout ? Tell me what you want to do Share Get Add-ins A A A D' Signature Line Cover Blank Page Table Pictures Online Shapes Icons 3D Online Link Bookmark Cross- Comment Header Footer Page Text Quick WordArt Drop Date & Time Page . Page Break Pictures Models SmartArt Chart Screenshot My Add-ins Video eference Number Box * Parts object Cap - L Equation Symbol Number Pages Tables Illustrations Add-ins Media Links Comments Header & Footer Text Symbols Question 2 Assume that Starlight Express produces bedside tables in the perfectly competitive bedside table market. TABLE 1 Output Total MC AFC AVC ATC per Cost Marginal fixed | variable average week cost cost Total cost 0 200 1 235 35 200 35 235 2 260 25 130 3 280 20 93 4 310 30 78 5 350 40 70 6 400 50 67 7 470 70 67 00 550 80 69 9 650 100 72 10 770 120 77 (a) Fill in the missing values for AFC, AVC, ATC and MC in table 1. (b) Suppose the equilibrium price in the bedside table market is $80. How many bedside tables should Starlight Express produce, and how much profit will they make? (c) If next week the equilibrium price of bedside tables drops to $40, should Starlight Express shut down? Explain? (d) Assuming Starlight Express is operating in the short-run and factor prices are constant, at what output level does the law of diminishing returns set in? Page 1 of 12 64 of 2642 words [x English (Australia) 132% O m Google Translate - . W ECONOMIC PRINCI. w Selim Annabayev_4.. 3:58 PM 1/10/2020