Output TVC TC MC AVC ATC PRICE TR MR 0 1 45 105 45 45 105 37 37 2 85 145 40 43.5
ID: 1112877 • Letter: O
Question
Output
TVC
TC
MC
AVC
ATC
PRICE
TR
MR
0
1
45
105
45
45
105
37
37
2
85
145
40
43.50
72.50
73.50
36.50
3
120
180
35
40
60
109.50
36
4
150
210
30
37.50
52.50
145
35.50
5
185
245
35
37
49
180
35
6
225
285
40
37.50
47.50
210
30
7
270
330
45
38.57
47.14
235
25
8
325
385
55
40.63
48.13
255
20
9
390
450
65
43.33
50
265
10
10
465
525
75
46.50
52.50
265
0
A. Using the table above, determine the profit maximizing/loss minimizing output level
Output
Price
TR
MR
TC
MC
0
38
0
20
1
36
36
36
38
18
2
34
68
32
48
10
3
32
96
28
54
6
4
30
120
24
58
4
5
28
140
20
66
8
6
26
156
16
80
14
7
24
168
12
100
20
8
22
176
8
130
30
B. Using the above, determine the profit maximizing/loss minimizing output and the amount of profit or loss
Output
TVC
TC
MC
AVC
ATC
PRICE
TR
MR
0
1
45
105
45
45
105
37
37
2
85
145
40
43.50
72.50
73.50
36.50
3
120
180
35
40
60
109.50
36
4
150
210
30
37.50
52.50
145
35.50
5
185
245
35
37
49
180
35
6
225
285
40
37.50
47.50
210
30
7
270
330
45
38.57
47.14
235
25
8
325
385
55
40.63
48.13
255
20
9
390
450
65
43.33
50
265
10
10
465
525
75
46.50
52.50
265
0
Explanation / Answer
TVC TC MC AVC ATC PRICE TR MR Profit Output 0 1 45 105 45 45 105 37 37 37 -68 2 85 145 40 43.5 72.5 36.75 73.5 36.5 -71.5 3 120 180 35 40 60 36.5 109.5 36 -70.5 4 150 210 30 37.5 52.5 36.25 145 35.5 -65 5 185 245 35 37 49 36 180 35 -65 6 225 285 40 37.5 47.5 35 210 30 -75 7 270 330 45 38.57 47.14 33.57143 235 25 -95 8 325 385 55 40.63 48.13 31.875 255 20 -130 9 390 450 65 43.33 50 29.44444 265 10 -185 10 465 525 75 46.5 52.5 26.5 265 0 -260 A. The profit maximization/lss minimozation happens at the point where MR = MC.In this ccase since TC > TR at all points. Loss is minimized at At this point MC = MR = 35 The quantity Q = 5 and Price = TR/Q = 36. Output Price TR MR TC MC ATC Profit 0 38 0 20 -20 1 36 36 36 38 18 38 -2 2 34 68 32 48 10 24 20 3 32 96 28 54 6 18 42 4 30 120 24 58 4 14.5 62 5 28 140 20 66 8 13.2 74 6 26 156 16 80 14 13.33333 76 7 24 168 12 100 20 14.28571 68 8 22 176 8 130 30 16.25 46 A. The profit maximization happens at the point where MR >= MC. At this point MR = 16> MC=14quantity Q = 6 and Price = 26. TR at Q = 6 = 156 and TC = 100 Profit = 156-100 =56
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.