Please help have to use question before and I am lost 3. Following the question above, after studies to your cost and budget, you now need to considermarket structure of tacos catering in the city you operate your business. Use the cost informationobtained from the previous question, to finish the questions here.(1) Suppose you are now operating your business in a town which has a very competitive tacocatering market. There are many restaurants and food caterers providing rolled tacos (flautas andtaquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolledtaco, to maximize your profit, how many tacos you should make per day? At this output level,what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR),total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your resultsare estimated as values per day.2. You are thinking to start your food catering business by making rolled tacos, which are oftencalled taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is toestimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixedcost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) islargely depending on the units of labor (variable input) you are going to use. Hiring one laborwill cost you $120 per day. Use the information given, to finish the questions below.(1) The table below presents the cost structure of your taco business. The first two columns giveyou the number of your output or tacos (Y) and the units of labor inputs. To finish this table, youneed to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable costVC = I20 xlaborunitsTC p=VCn+fixed costAVC=(AVC) and average total cost (ATC). Note: MC = ATC / AY.Fixed Cost 30d vanable cost20perdayforone laborOutput, Variable input and Costs (per day)MC = TCn-TG-1ATCAYТаcosLaborVCTCMCAVCАТСATC5011204200.002.4105240360480600720840960108012001208.4540660780900(020l140126013801500(2.285114Sil428571202.1818181202.086957 3.391304(20165323042882.083333117647(20 181818 2.9610393 a253406.1203.38542028571481201203.066673(2.608696|326o874509.46012010

We know that AR = TR/ Y and TR = PY/Y = P Therefore AR = P And MR = TRn - TRn-1

3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - are estimated as values per day. Total cost. Your results %3D

3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - are estimated as values per day. Total cost. Your results %3D

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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