out put price total total total. marginal. Marginal Average profit

per month revenue cost profit. revenue* cost* total cost. per unit

(Price

Minus

Average

Cost)

0 $1,000 $- $60,000 $(60,000)

100 $1,000 $100,000 $90,000 $10,000 $1,000 $300 $900 $100

200 $1,000 $200,000 $130,000 $70,000 $1,000 $400 $650 $350

300 $1,000 $300,000 $180,000 $120,000 $1,000 $500 $600 $400

400 $1,000 $400,000 $240,000. $160,000 $1,000 $600 $600 $400

500 $1,000 $500,000 $320,000 $180,000 $1,000 $800 $640 $360

600 $1,000 $600,000 $420,000 $180,000 $1,000 $1,000 $700 $300

700 $1,000 $700,000 $546,000 $154,000 $1,000 $1,260 $780 $220

800 $1,000 $800,000 $720,000 $80,000 $1,000 $1,740 $900 $100

900 $1,000 $900,000 $919,800 $(19,800) $1,000 $1,998 $1,022 $(22)

*Note that output levels are calibrated in hundreds in this example; that's why we have divided the change in total costs and revenues from one output level to another by 100 to calculate marginal revenue and marginal cost.

According to the above Table

(a)What are the fixed costs of production for the firm?

(b)At what rate of output was profit per computer maximized? (Choose the highest output level.)

(c)At what output rate was total profit maximized?