Calculate average total cost, Business Economics

Assignment Help:

Calculate Average Total Cost

A perfectly Competitive firm is operating at a profit-maximizing level of output, q*. This output level is 500 units.

At this output level, the firm earns a Total Revenue of $3,000. At this output, the firm faces the following costs:

  Total Fixed Costs of $1,200

  Total Variable Costs of  $3,300 and   

(A) Solve for the Market Price. PE

 = ___

(B)  Solve for ATC (average total cost) at an output level of 1,000 units.  

ATC= _

(C) Calculate the firm's profit. (Specify if this is positive or negative profit.)  

Profit = _____

(D) Should the firm shut down or keep producing in the Short Run? 

(E) Graph this, for the firm; indicate the demand curve the firm faces. Also indicate the MC, ATC, and AVC curves. Label q* on the quantity axis. Indicate the value of the ATC & AVC curves (and PE) at the level of output q*. (Label these values on the Price Axis. )

Draw in the Profit Box as well.  

1803_Calculate Average Total Cost.png


Related Discussions:- Calculate average total cost

Needs and wants, Nathan is a successful public relations (PR) consultant, t...

Nathan is a successful public relations (PR) consultant, thanks to an outgoing personality and sharp intelligence. At 35, he is near the height of his earnings potential, at around

Placing countries together in the same grouping, What is the main danger in...

What is the main danger in placing countries together in the same grouping? It is useful to classify countries by groupings for identification of common problems and policy pu

Production, The factors that affect the volume of production in economics

The factors that affect the volume of production in economics

What are the factors of the economic sectors, What are the factors of the e...

What are the factors of the economic sectors? The factors of the economic sectors: • Primary sector including natural resources as like agriculture, fishing, quarrying minin

Competitive market, You are given the following functions in a fully compet...

You are given the following functions in a fully competitive market: Market demand function: Qd = 20 – 3P Market supply function: Qs = 4 + P Where P is price A) In which price s

Status of the economy and gdp , • Although the country produced several typ...

• Although the country produced several types of commodities (goods and services) in the year 2002, but this country's Central Statistics Office has grouped such commodities into f

Eat at the hotel restaurant, Suppose that a company knows that on average, ...

Suppose that a company knows that on average, 30% of guests at a hotel will eat at the hotel restaurant. What is the probability that on a given night that at least 33% of the 160

Compute internal rate of return, You are evaluating two (mutually exclusive...

You are evaluating two (mutually exclusive) methods of strip-mining a resource-rich area. The alternatives are very similar, though one important difference is in the scale of the

How can value management be use when project is under way, When a project i...

When a project is under way, how can value management be utilized to estimate proposed changes? While potential changes to a project have been acknowledged, value management ca

How does resource enhancement improve development, How does resource enhanc...

How does resource enhancement improve development? Enhancements in the quantity and quality of resources increases productivity hence incomes. Enhanced management raises outpu

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd