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The following table presents the quantity (Q) in millions of Covid vaccines that Pfizer would be willing to produce and sell at various prices. Additionally,

  1. The following table presents the quantity (Q) in millions of Covid vaccines that Pfizer would be willing to produce and sell at various prices. Additionally, the Fixed Cost (F) and Variable Cost (VC) are provided for each quantity.

Q Price F VC TC
100 $120 $5,000 $200 $5,200
200 $110 $5,000 $400 $5,400
300 $100 $5,000 $600 $5,600
400 $90 $5,000 $800 $5,800
500 $80 $5,000 $1,000 $6,000
600 $70 $5,000 $1,200 $6,200
700 $60 $5,000 $1,400 $6,400
800 $50 $5,000 $1,600 $6,600
900 $40 $5,000 $1,800 $6,800
1000 $30 $5,000 $2,000 $7,000
1100 $20 $5,000 $2,200 $7,200
1200 $10 $5,000 $2,400 $7,400

  1. How many vaccines should Pfizer producer and what price should it charge? You should fill in additional columns as needed; you are permitted to use Excel. (10)

  1. If fixed costs dropped to $0, or increased to $10,000, how would it change the firm's output and price? (5)

  1. What is the maximum fixed cost where the firm would have gone into production? (2)

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