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Douglas fur is a small manufacturer of fake-fur boots. It is one of many firms selling fake-fur boots. The following table shows its total cost of production
Quantity of boots (pairs per hour)
Total cost (dollar per hour)
0
120
1
200
2
240
3
285
4
340
5
425
6
540
1. What is Douglas Fur's fixed cost?
2. What is the ATC in the short run when 4 pairs of boots are produced?
3. Douglas fur is thinking of increasing its production from 3 to 4 pairs of boots. What would its MC be?
4. If the price of a pair of boots is $49 how many pairs should Douglas fur produce?
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