The table below shows the total costs faced by Faizah's Manufacturing Firm for different quantities of Good G sold. Quantity Total Cost 0 $64 1 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 2 3 4 5 6 7 8 9 10 Faizah's Manufacturing Firm sells Good G in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $32 per unit. (a) Calculate the average fixed cost of producing 8 units. Show your work. (b) Identify the profit-maximizing quantity. Explain using marginal analysis. (c) Calculate the economic profit at the profit-maximizing quantity you identified in part (b). Show your work.

The table below shows the total costs faced by Faizah's Manufacturing Firm for different quantities of Good G sold. Quantity Total Cost 0 $64 1 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 2 3 4 5 6 7 8 9 10 Faizah's Manufacturing Firm sells Good G in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $32 per unit. (a) Calculate the average fixed cost of producing 8 units. Show your work. (b) Identify the profit-maximizing quantity. Explain using marginal analysis. (c) Calculate the economic profit at the profit-maximizing quantity you identified in part (b). Show your work.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

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