Quiz 5
Economics 121 A & B
October 4, 1996
Name:_______________________________
This quiz is based on the information for a purely
competitive company shown in the table below.
| Output
(Q)
| Fixed Costs
(TFC)
| Variable Costs
TVC
| Total Costs
(TC)
| Marginal Cost
(MC)
| Average Fixed Cost
(AFC)
| Average Variable Cost
(AVC)
| Average Total Cost
(ATC)
| Total Revenues
(TR)
| Profit
()
|
| 0 | |
| 200 | -
| - | -
| - | 0
| |
| 1 | | 350
| | | 200
| | | 260
| -290 |
| 2 | |
| | 100 |
| 225 | 325
| 520 | |
| 3 | | 600
| | | |
| 267 | 780
| -20 |
| 4 | |
| | 200 |
| 200 | 250
| 1040 | |
| 5 | |
| | 250 |
40 | | 250
| 1300 | 50
|
| 6 | | 1350
| | 300 |
| 225 |
| 1560 | |
| 7 | | 1700
| 1900 | |
| | | 1820
| |
| 8 | |
| 2300 | 400
| 25 | 263
| | 2080 |
|
(a) How much are the company's fixed costs?
(b) At what price is the company selling its product?
(c) How much output should the company produce if it wishes to
maximize its profit?
(d) Suppose the price of the company's output changes to $240.
Should the company increase or decrease its production? Is this
consistant with the "Law of Supply"?
Pledge:
I pledge my honor that during this quiz I neither gave
nor received assistance
and that I saw no dishonest work.
Signed: _____________________________
Disclaimer