Question

. Consider yourself as a manager of a firm that produces mineral water bottles of one litter capacity. Consider your firm is operating in a market where all the other firms charge USD 1.5 per bottle. Calculate the missing values mentioned in the respective columns and depict the respective costs revenue and profit curves in the graph. Also mention the profit region in the graph.

Outputs	Building Rent	Interest on Capital	Labor Costs	Total Cost	Revenues	Profits
0	1,000	0	0	?	?	?
10,000	1,000	1,000	15,000	?	?	?
20,000	1,200	1,200	19,000	?	?	?
30,000	1,400	1,500	25,000	?	?	?
40,000	1,600	2,200	40,000	?	?	?
50,000	1,800	3,000	60,000	?	?	?
60,000	2,000	4,000	90,000	?	?	?
70,000	2,200	5,500	130,000	?	?	?

Answer 1

Output Q	Building Rent A	Interest on capital K	Labor Coct L	Total Cost TC=A+K+L	Revenue TR=Q*1.5	Profit=TR-TC
0	1000	0	0	1000	0	-1000
10000	1000	1000	15000	17000	15000	-2000
20000	1200	1200	19000	21400	30000	8600
30000	1400	1500	25000	27900	45000	17100
40000	1600	2200	40000	43800	60000	16200
50000	1800	3000	60000	64800	75000	10200
60000	2000	4000	90000	96000	90000	-6000
70000	2200	5500	130000	137700	105000	-32700