Question
In: Economics
A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete...
A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete the table below to answer the following questions.
|
Quantity of output (liter) |
Total revenue |
Marginal revenue |
Total cost |
Marginal cost |
ATC |
VC |
AVC |
|
0 |
3 |
||||||
|
1 |
5 |
||||||
|
2 |
8 |
||||||
|
3 |
12 |
||||||
|
4 |
17 |
||||||
|
5 |
23 |
||||||
|
6 |
30 |
||||||
|
7 |
38 |
||||||
|
8 |
47 |
a) Find the quantity of output that maximizes the profit for the firm. Also calculate the profit at that level.
b) Find out the break-even quantity for the firm.
c) Find out the shutdown point for the firm.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete...
A dairy farm faces a perfectly competitive market. It sells milk
at $6 per liter. Complete the table below to answer the following
questions.
Quantity of output (liter)
Total revenue
Marginal revenue
Total cost
Marginal cost
ATC
VC
AVC
0
3
1
5
2
8
3
12
4
17
5
23
6
30
7
38
8
47
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