Quiz 4 - Economics 121 C - Prof. A. D. Becker
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 |
- |
- |
- |
- |
0 |
||||
|
10 |
6000 |
300.0 |
300.00 |
2800 |
|||||
|
20 |
4000 |
7000 |
|||||||
|
30 |
5000 |
100 |
266.67 |
400 |
|||||
|
40 |
200 |
175.00 |
250.00 |
11200 |
1200 |
||||
|
50 |
13000 |
300 |
60.0 |
200.00 |
14000 |
||||
|
60 |
50.0 |
233.33 |
283.33 |
-200 |
|||||
|
70 |
19000 |
500 |
314.29 |
||||||
|
80 |
25000 |
28000 |
22400 |
(a) Fill in the company's fixed costs.
(b) On the graphs below, sketch the firm's average total cost (ATC)
and marginal cost (MC) curves on the right and supply and demand on the
left. Show how the firm's profit maximizing output is chosen and what it
is (how much). Be as accurate as possible and label all relevant points
(prices, quantities, costs) and axes.
(c) How much output should the firm make at the following prices:
|
Price |
$150 |
$450 |
|
Output |
||
|
|