Assume that the cost data in the following table are for a purely competitive producer: Average Total Product Fixed Cost Average Variable Average Total Cost Cost Marginal Cost 0 1 $ 60 $ 45 $ 105 $ 45 2 30 42.5 72.5 40 3 20 40 60 35 4 15 37.5 52.5 30 5 12 37 49 35 6 10 37.5 47.5 40 7 8.57 38.57 47.14 45 8 7.5 40.63 48.13 55 9 6.67 43.33 50 65 10 6 46.5 52.5 75 b. At a product price of $41 es i. Will this firm produce in the short run? Yes
Assume that the cost data in the following table are for a purely competitive producer: Average Total Product Fixed Cost Average Variable Average Total Cost Cost Marginal Cost 0 1 $ 60 $ 45 $ 105 $ 45 2 30 42.5 72.5 40 3 20 40 60 35 4 15 37.5 52.5 30 5 12 37 49 35 6 10 37.5 47.5 40 7 8.57 38.57 47.14 45 8 7.5 40.63 48.13 55 9 6.67 43.33 50 65 10 6 46.5 52.5 75 b. At a product price of $41 es i. Will this firm produce in the short run? Yes
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 17E
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