Refer to the profit maximization table below. A fisher who sells his mackerel catch in a perfectly competitive market faces revenues and costs as shown in the table. a. Fill in the table, writing out dollars and cents e.g. $1.00 or $0.10. Remember to include a minus (-) sign for any negative entries and to round 0.005 up to 0.01. (1) (2) (3) (4) (5) (6) (7) (8) (10) Price Quantity Total Revenue Fixed Cost Variable Cost Total Cost Average Fixed Average Variable (9) Marginal Cost ($ per kilogram) (kilograms per ($) ($ ) ($ ) ($ ) Cost Cost Average Cost ($ per kilogram) ($ per kilogram) ($ per kilogram) ($ per day) kilogram) 0. 35 0 15 0 0. 35 10 15 3 0 . 35 18 15 4 0. 35 30 15 7 0. 35 34 15 9 0. 35 36 15 14 b. Draw the marginal revenue, marginal cost, average variable, and average cost curves in the graph below. Using the tools provided plot only the 2 endpoints for the marginal revenue curve at the quantities of 0 and 36. Plot 5 points each for the marginal cost, average variable and average cost curvescurve in the properties box that appears. Remember that marginal values such as marginal cost are plotted halfway between the two relevant quantity levels on the horizontal axis. Revenues and Costs for 3 Fisher 2.50 Tools 2.25 / 2-00 MR AC 1.75 E g 1.50 m m 2 MC AVC '2 1.25 31.00 {I} 0.75 0.50 0.25 m 0 10 20 30 40 \\J P OneDrive Quantity (kilograms per day) Scre quantity [Knograms per (Jay; C. This fisher's prot-maximizing quantity (from the quantities shown in the table above) is sher is making a d. The fisher's breakeven point is at a quantity (from the quantities shown in the table above) of The fisher's shutdown point is at a quantity (from the quantities shown in the table above) of {Click to select) v of$ e. The fisher's supply curve is O the marginal cost curve above the shutdown point. 0 the average cost curve above the shutdown point. 0 the average cost curve above the breakeven point. 0 the marginal cost curve below the breakeven point. kilograms. At this quantity, the kilograms and a price of$ kilograms and a price of$ d. The fisher's breakeven point is at a quantity {from the quantities shown in the table above) of kilograms and a price of $ The fisher's shutdown point is at a quantity (from the quantities shown in the table above) of kilograms and a price of$ e. The fisher's supply curve is O the marginal cost curve above the shutdown point. 0 the average cost curve above the shutdown point. 0 the average cost curve above the breakeven point. O the marginal cost curve below the breakeven point. f. If, in the long run. price remains at $0.35 and the total costs shown in the table still apply. the fisher will 0 break even. O leave the industry. 0 continue to make a positive economic profit. 0 continue to make an economic loss
