Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from

image text in transcribed
image text in transcribed
Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to $150 to $180, where q is quantity and C is total cost. Assume that the price of output is $58. MC C (FC = $100) C (FC = $150) C (FC = $180) 100 150 180 50 150 200 230 28 178 228 258 20 198 248 278 14 212 262 292 18 230 280 310 TOO . NO UI A W N - O 2 20 250 300 330 22 272 322 352 38 310 360 390 45 355 405 435 55 410 460 490 475 525 555 If the fixed cost of production is $100, then output will be units (enter your response using an integer) and profit will be $. If the fixed cost of production is $150, then output will be units and profit will be $ If the fixed cost of production is $180, then output will be |units and profit will be $. What general conclusions can you reach about the effects of fixed costs on the firm's output choice? The firm's output choice O A. is unaffected by fixed costs because such costs leave profits unchanged. O B. is unaffected by fixed costs because such costs leave marginal costs unchanged. O C. is affected by fixed costs because such costs increase total costs. O D. is affected by fixed costs because such costs decrease price. O E. is unaffected by fixed costs because such costs leave total costs unchanged

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Advertising

Authors: William F Arens

16th Edition

1260735419, 9781260735413

More Books

Students also viewed these Economics questions

Question

how does Dell computers uses big data and mapping chains in SCRM?

Answered: 1 week ago