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According to the table below Output per month Price Total Revenue Total Cost Total Profit Marginal Revenue Marginal Cost Average Total Cost Profit per Unit Price Minus Average Cost

According to the table below,

Output per month Price Total Revenue Total Cost Total Profit Marginal
Revenue*
Marginal Cost* Average Total Cost Profit per Unit (Price Minus Average Cost)
    0 $ 1,000 $        0 $ 60,000 -$60,000 - - - -
100 1,000 100,000   90,000   10,000 $ 1,000    $ 300 $900 $100
200 1,000 200,000 130,000   70,000 1,000    400 650 350
300 1,000 300,000 180,000 120,000 1,000    500 600 400
400 1,000 400,000 240,000 160,000 1,000    600 600 400
500 1,000 500,000 320,000 180,000 1,000    800 640 360
600 1,000 600,000 420,000 180,000 1,000 1,000 700 300
700 1,000 700,000 546,000 154,000 1,000 1,260 780 220
800 1,000 800,000 720,000 80,000 1,000 1,740 900 100
900 1,000 900,000 919,800 -19,800 1,000 1,998 1,022 -22
*Note that output levels are calibrated in hundreds in this example; that's why we have divided the change in total costs and revenues from one output level to another by 100 to calculate marginal revenue and marginal cost. Very few manufacturers deal in units of 1.


(a) What were the fixed costs of production for the firm?

Instructions: Enter your response as a whole number.

$

(b) At what rate of output was profit per computer maximized? (Choose the highest output level.)

computers per month

(c) At what output rate was total profit maximized? (Choose the highest output level.)

computers per month

May 26 2020 View more View Less

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