Output (cases)	Total Fixed Costs ($)	Total Variable Costs ($)	Total Costs ($)	Average Fixed Cost ($/case)	Average Variable Cost ($/case)	Average Total Cost ($/case)	Marginal Cost ($/case)
1	100	65	Answer	Answer	Answer	Answer	Answer
2	Answer	120	Answer	Answer	Answer	Answer	Answer
3	Answer	160	Answer	Answer	Answer	Answer	Answer
4	Answer	210	Answer	Answer	Answer	Answer	Answer
5	Answer	270	Answer	Answer	Answer	Answer	Answer
6	Answer	345	Answer	Answer	Answer	Answer	Answer
7	Answer	440	Answer	Answer	Answer	Answer	Answer
8	Answer	560	Answer	Answer	Answer	Answer	Answer

a) Fill in the rest of the table. (9 marks - 1.5 marks per column)

b) At what level of output does Bilbo begin to experience increasing marginal costs? (1 mark)

Answer cases.

c) At what level of output does Bilbo begin to experience rising average total costs? (1 mark)

Answer cases.

Suppose that Bilbo is operating in a perfectly competitive market, and the price of his breakfast burritos is $105 per case.

d) How many cases will Bilbo produce? (1 mark)

Answer cases.

e) Is Bilbo earning an economic profit or loss? What is the size of this profit or loss? (2 marks)

Bilbo isAnswerearning profitincurring a loss of $Answer

f) Suppose the price of his breakfast burritos fell to $100 per case. Will Bilbo change his level of output? (1 mark)

AnswerNoYes

g) At $100, is Bilbo earning economic profit or loss? What is the size of this profit or loss? (2 marks)

Bilbo isAnswerearning profitincurring a loss of $Answer

h)What is Bilbo's shutdown price? (1 mark)

$Answer

Please answer all parts of the question.

Assignment 4 - due Thursday, November 04

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Assignment 5 - due Thursday, November 25

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