If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.
If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...
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