Author Question: Consider the following total cost schedule for a perfectly competitive firm producing ball-point ... (Read 43 times)

jrobl3 · **on:** Oct 12, 2022

Question 1

Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.

Output per period	TVC ($)	TFC ($)
0	0	5
10	2	5
20	3	5
30	6	5
40	10	5
50	15	5

TABLE 9-2

Refer to Table 9-2. If this firm were producing at an output level of 30 units, the AFC would be ________ and the AVC would be ________.
◦ $0.20; $0.17
◦ $0.17; $0.20
◦ $6; $5
◦ $0.10; $0.30
◦ $5; $6

Question 2

Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.

Output per period	TVC ($)	TFC ($)
0	0	5
10	2	5
20	3	5
30	6	5
40	10	5
50	15	5

TABLE 9-2

Refer to Table 9-2. This firm would produce no output in the short run if the market price of its output
◦ dropped below $0.30.
◦ dropped below $0.20.
◦ dropped below $3.00.
◦ dropped below $0.15.
◦ dropped below $2.00.

FireandIce · **Reply #1 on:** Oct 12, 2022

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