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In: Economics

Manajim, Inc. is operating in a competitive market, and faces costs of production as follows: Q      ...

Manajim, Inc. is operating in a competitive market, and faces costs of production as follows:
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0         0       2100              
42        2100                
84        2940                
126       3780                
168       5880                
210       8400                
252       15120               






a.     Calculate the company’s total costs, average fixed costs, average variable costs, average total costs, marginal costs , total revenue and marginal revenue at each level of production.
                                   
b.     The price per unit is $160, the General Manager decides to shut down . Is it a wise decision                 
                                   
c.     Vaguely remembering his introductory economics course, the Financial Manager tells the GM it is better to produce 252. Was the financial manager correct?          
Select one:
a.
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0       300     0       300     na      na      na      na      0       na
6       300     300     600     50      50      100     50      960     160
12      300     420     720     25      35      60      20      1920    160
18      300     540     840     16.66   30      46.66   20      2880    160
24      300     840     1140    12.5    35      47.5    50      3840    160
30      300     1200    1500    10      40      50      60      4800    160
36      300     2160    2460    8.33    60      68.33   160     5760    160b. Yes,
c. No
b. None of the answers
c.
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0       300     0       300             0       
6       300     300     600     50      50      100     50      960     160
12      300     420     720     25      35      60      20      1920    160
18      300     540     840     16.66   30      46.66   20      2880    160
24      300     840     1140    12.5    35      47.5    50      3840    160
30      300     1200    1500    10      40      50      60      4800    160
36      300     2160    2460    8.33    60      68.33   160     5760    160
b. No
c. Yes
d.
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0       2100    0       2100            0       
42      2100    2100    4200    50      50      100     50      6720    160
84      2100    2940    5040    25      35      60      20      13440   160
126     2100    3780    5880    16.66   30      46.66   20      20160   160
168     2100    5880    7980    12.5    35      47.5    50      26880   160
210     2100    8400    10500   10      40      50      60      33600   160
252     2100    15120   17220   8.33    60      68.33   160     40320   160b.Yes
c.No
e.
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0       2100    0       2100    2100    na      na        0       na
42      2100    2100    4200    2100    50      100     50      6720    160
84      2100    2940    5040    25      35      60      20      13440   160
126     2100    3780    5880    25      30      46.66   20      20160   160
168     2100    5880    7980    25      35      47.5    50      26880   160
210     2100    8400    10500   25      40      50      60      33600   160
252     2100    15120   17220   25      60      68.33   160     40320   160
b.Yes
c.No
f.
Q       FC      VC      TC      AFC     AVC     ATC     MC      TR      MR
0       2100    0       2100            0       
42      2100    2100    4200    50      50      100     50      6720    160
84      2100    2940    5040    25      35      60      20      13440   160
126     2100    3780    5880    16.66   30      46.66   20      20160   160
168     2100    5880    7980    12.5    35      47.5    50      26880   160
210     2100    8400    10500   10      40      50      60      33600   160
252     2100    15120   17220   8.33    60      68.33   160     40320   160
b. No
C. Yes

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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