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The following data describe the firm's monthly demand and monthly costs for a manufacturer of electronic components. 1. Complete the following cost and revenue schedules
The following data describe the firm's monthly demand and monthly costs for a manufacturer of electronic components. 1. Complete the following cost and revenue schedules for this company. Total Variable Cost for Average Variable Price per Cost per Average Marginal Total Cost Cost per per box of box of 1000 1000 units units units Fixed Cost $800 produced Marginal Revenue per Total box of 1000 Revenue units $0 Total box of Cost 1000 units $800 Quantity of boxes of box of 1000 units 1000 units 0 1 $1,700 2 $1,575 3 $1,450 4 $1,325 5 $1,200 6 $1,075 7 $950 8 $825 $1,028 $1,074 $1,117 $1,184 $1,303 $1,498 $1,753 $2,103 (a) What is the profit maximizing (or loss minimizing) quantity of boxesthat this company should supply? Why? (b) What price will the company charge? How is this price determined? Will this result in economic profits? (c) If the company charged a higher price than what you found in (b) above, what would happen? (d) What market structure do you think this company participates in? Why
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