A Milton company is a clothing company, below is a table that shows the production and that costs of this company that works in competitive market in short run: Q P. TR MR TVC TC TF AVC АТС AFC MC 8 20 1 8. 12 15 23 3. 16 24 4 17.4 25.4 20 28 24 32 7 32 40 8. 56 64 a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output. d. Determine the shutdown price and calculate the profits/loss at this price. IS 2.
A Milton company is a clothing company, below is a table that shows the production and that costs of this company that works in competitive market in short run: Q P. TR MR TVC TC TF AVC АТС AFC MC 8 20 1 8. 12 15 23 3. 16 24 4 17.4 25.4 20 28 24 32 7 32 40 8. 56 64 a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations. b. Show P, ATC,AVC,MC In the same graph c. What is the output level that should this firm produce to maximize its profits? calculate the amount of profits at this level of output. d. Determine the shutdown price and calculate the profits/loss at this price. IS 2.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
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