Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day, the firm has fixed costs of $200. L Q MP MC TC ATC 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155 Complete the table Compare the average total cost and the marginal cost and explain the relationship Describe the methods that can be used to determine where profit is maximized?
Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day, the firm has fixed costs of $200. L Q MP MC TC ATC 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155 Complete the table Compare the average total cost and the marginal cost and explain the relationship Describe the methods that can be used to determine where profit is maximized?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day, the firm has fixed costs of $200.
L |
Q |
MP |
MC |
TC |
ATC |
0 |
0 |
|
|
|
|
1 |
20 |
|
|
|
|
2 |
50 |
|
|
|
|
3 |
90 |
|
|
|
|
4 |
120 |
|
|
|
|
5 |
140 |
|
|
|
|
6 |
150 |
|
|
|
|
7 |
155 |
|
|
|
|
- Complete the table
- Compare the
average total cost and the marginal cost and explain the relationship
- Describe the methods that can be used to determine where profit is maximized?
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