onsider the following table of costs for the Winsome Widget Factory, which opera
ID: 1233745 • Letter: O
Question
onsider the following table of costs for the Winsome Widget Factory, which operates in a perfectly competitive market. The market price faced by this firm is $6.00 per widget.a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit at the top of the column in the gray section within the table.
b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR, and Total Profit in the blue sections of the table.
Winsome Widget Factory
Output Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost Total Revenue Marginal Revenue Total Profit
0 $100
10 150
20 180
30 200
40 240
50 300
60 375
70 475
80 600
90 750
100 1,000
Explanation / Answer
O TFC TVC TC AFC AVC ATC MC Revenue MR Profit
0 100 0 100
10 100 50 150 10 5 15 50 60 60 -90
20 100 80 180 5 4 9 30 120 60 -60
30 100 100 200 3.33 3.33 6.67 20 180 60 -20
40 100 140 240 2.5 3.5 6 40 240 60 0
50 100 200 300 2 4 6 6 60 300 60 0
60 100 275 375 1.67 4.58 6.25 75 360 60 -15
70 100 375 475 1.43 5.36 6.79 100 420 60 -55
80 100 500 600 1.25 6.25 7.5 125 480 60 -120
90 100 650 750 1.11 7.22 8.33 150 540 60 -210
100 100 900 1000 1 9 10 250 600 60 -400
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