Author Question: Consider the following total cost schedule for a perfectly competitive firm producing ball-point ... (Read 73 times)

gboileau · **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. What is the marginal cost of producing the 15th unit of output?
◦ $0.10
◦ $0.40
◦ $0.375
◦ $0.50
◦ $0.17

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. Suppose the prevailing market price for this firm's product is $0.40. The profit-maximizing level of output for this firm is between
◦ 30 and 40 units.
◦ 20 and 30 units.
◦ 0 and 10 units.
◦ 40 and 50 units.
◦ 10 and 20 units.

Asfa · **Reply #1 on:** Oct 12, 2022

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