Question
(From Pindyck and Rubinfeld, Microeconomics, 9 th ed.) a. Fill in the blanks in the table below; all amounts are in dollars. Output Fixed cost
(From Pindyck and Rubinfeld, Microeconomics, 9th ed.)
a. Fill in the blanks in the table below; all amounts are in dollars.
Output | Fixed cost | Variable cost | Total cost | Marginal cost | Average fixed cost | Average variable cost | Average total cost |
0 | 100 | ||||||
1 | 125 | ||||||
2 | 145 | ||||||
3 | 157 | ||||||
4 | 177 | ||||||
5 | 202 | ||||||
6 | 236 | ||||||
7 | 270 | ||||||
8 | 326 | ||||||
9 | 398 | ||||||
10 | 490 |
b. Suppose the price of the good is $40. How much should be produced? What are profits?
c. How does your answer change if the price drops to $25?
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
978-0134078809
