Pepperdine University

HUHI Il-II-y VI HUI-Phall- i 2. A computer company produces affordable, easy- to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. a. Create a table that shows the company's output, total cost, marginal cost, average cost, and variable cost. b. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? c. If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? Should it have shut down instead of operating at a loss