Fill in the following cost table where cells have been left blank. In other words, use "Units of Output" and "Total Cost" to find all the missing values of Fixed Cost, Variable Cost, Marginal Cost, and Average Cost. Units of Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost 0 100 1 125 2 145 3 157 4 177 5 202 6 236 7 276 8 326 9 398 10 490 i. Suppose the market price of the output is $40 for each unit. Based on the information in the table, how many units should you produce in order to maximize total profit? What about a price of $50? What about a price of $60? ii. For each of the price points in part i, calculate the total profit the firm would gain. Assuming you are not a price-taker, which of these prices would you recommend? Why?
Fill in the following cost table where cells have been left blank. In other words, use "Units of Output" and "Total Cost" to find all the missing values of Fixed Cost, Variable Cost, Marginal Cost, and Average Cost.
Units of Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost
0 100
1 125
2 145
3 157
4 177
5 202
6 236
7 276
8 326
9 398
10 490
i. Suppose the market price of the output is $40 for each unit. Based on the information in the table, how many units should you produce in order to maximize total profit? What about a price of $50? What about a price of $60?
ii. For each of the price points in part i, calculate the total profit the firm would gain. Assuming you are not a price-taker, which of these prices would you recommend? Why?
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