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Labor (hours) Total production. Q Marginal Product (MP) Change in 2/Change in 1 Total fixed cost. (TFC) Total Variable cost (TVC) Total cost ( TC)

Labor (hours)

Total production.

Q

Marginal

Product

(MP)

Change in 2/Change in 1

Total fixed cost.(TFC)

Total Variable cost

(TVC)

Total cost (TC)

TC=TFC+TVC

Average total

cost.(ATC)

ATC=

TC/Q

Average variable cost.(AVC)

AVC=

TVC/Q

Average Fixed cost (AFC)

AFC=

TFC/Q

Marginal

Cost (MC)

MC=

Change in TC/Change in Q.

0 0 $0 $5,000 $0 $5,000 - - - -
10 100 $100 $5,000 $25,000 $30,000 $300.0 $250.0 $50.0 $250.0
11 250 $150 $5,000 $27,500 $32,500 $130.0 $110.0 $20.0 $16.7
12 450 $200 $5,000 $30,000 $35,000 $77.8 $66.7 $11.1 $12.5
13 700 $250 $5,000 $32,500 $37,500 $53.6 $46.4 $7.1 $10.0
14 900 $200 $5,000 $35,000 $40,000 $44.4 $38.9 $5.6 $12.5
15 1050 $150 $5,000 $37,500 $42,500 $40.5 $35.7 $4.8 $16.7
16 1150 $100 $5,000 $40,000 $45,000 $39.1 $34.8 $4.3 $25.0
17 1200 $50 $5,000 $42,500 $47,500 $39.6 $35.4 $4.2 $50.0
18 1200 $0 $5,000 $45,000 $50,000 $41.7 $35.4 $4.2 0
19 1150 -$50 $5,000 $47,500 $52,500 $45.7 $41.3 $4.3 -$50.0

I'm selling each ice cream to $10 dl

I am selling 4000 units per month.

How much are you selling your product for at the profit-maximizing price?

How many units?

What is your total revenue?

What are your explicit & implicit costs?

What are your accounting and economic profits at the end of the first year (these might be negative, and that's ok).

How long will it take you to break even, or turn a profit?

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