Question
Paulina sells beef in a perfectly competitive market where the price is $6 per pound. Her total revenue and total costs are given in the
Paulina sells beef in a perfectly competitive market where the price is $6 per pound. Her total revenue and total costs are given in the table below.
[table information]
Quantity of beef (lb.)0,1,2,3,4,
Total revenue ($) 0,6,12,18,24
Total cost ($)9,11,12,18,25
Profit ($) ?
Marginal revenue ($)?
Marginal cost ($)?
Instructions:Enter your answers as a whole number. In part (b) use decimal places where needed.If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. Complete the table by filling in the values for profit, marginal revenue, and marginal cost.
b. Paulinia's firm's total fixed cost is $.
c. If Paulinaproduces 2 pounds of beef, the average total cost (ATC) will be$.
Average fixed cost (AFC) will be$, andaverage variable cost (AVC)$.
d. What is this firm's profit-maximizing (or loss-minimizing) output level?pounds
e. At this output level, the firm's total profit is$.
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