Quantity | TC | Price of | TR | ATC | AVC | MC | MR | MR-MC | Profit | change in | |
good | profit | ||||||||||
0 | 10 | 5 | 0 | ||||||||
1 | 15 | 5 | 5 | 15 | 5 | 5 | 5 | ||||
2 | 18 | 5 | 10 | 9 | 4 | 3 | 5 | ||||
3 | 20 | 5 | 15 | 6.67 | 3.33 | 2 | 5 | ||||
4 | 21 | 5 | 20 | 5.25 | 2.75 | 1 | 5 | ||||
5 | 23 | 5 | 25 | 4.6 | 2.6 | 2 | 5 | ||||
6 | 26 | 5 | 30 | 4.33 | 2.67 | 3 | 5 | ||||
7 | 30 | 5 | 35 | 4.29 | 2.86 | 4 | 5 | ||||
8 | 35 | 5 | 40 | 4.38 | 3.13 | 5 | 5 | ||||
9 | 41 | 5 | 45 | 4.56 | 3.44 | 6 | 5 | ||||
10 | 48 | 5 | 50 | 4.8 | 3.8 | 7 | 5 | ||||
11 | 56 | 5 | 55 | 5.09 | 4.18 | 8 | 5 | ||||
This is a firm in a perfectly competitive market. The selling price is $5.
Fill in the table below and enter the answers to the questions down below:
1-How many units should be produced?
2- What will be the profit per unit?
3- What will be the total profit?
4- If the price were to drop to $4 how many units should be produced?
5- What will be the total profits?
6- If the price falls to $1, how many units should be produced?
7- At what price will you break even?
8- At what price should the company close down?
9- At what price will you be minimizing losses?
10- There are 2 ways of calculating the change in total profits. List and explain what information you would use.
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