Question

The table below shows cost and revenue information for Choco Lovers, a perfectly competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Round your answers to 2 decimal places.

Choco Lovers Costs and Revenue Quantity TC ATC MC of Gift Boxes ($) ($) ($) 20 135 6.75 6 25 162.5 6.5 30 6.42 6 35 227.5 7 40 272.5 6.81 9 45 327.5 7.28 11 Instructions: Enter your answers below as whole numbers. For profit and profit per unit, round your answers to 2 decimal places. Include a negative sign if necessary. Profit-maximizing price = $ 7 Profit-maximizing quantity = Total revenue = $ Profit = $ Profit per unit = $

Answer 1

Q-1 :: ANSWER ::

=> The table below shows cost and revenue information for Choco Lovers ::

Quantity	PRICE	TC($)	ATC	MC	TOTAL REVENUE	MR	PROFIT	Profit Per Unit
20	$7	135	6.756	6	140	-	-5	-0.25
25	$7	162.5	6.5	5.5	175	7	-12.5	-0.50
30	$7	192.6	6.42	6	210	7	-17.4	-0.58
35	$7	227.5	6.5	7	245	7	-17.5	-0.50
40	$7	272.5	6.81	9	280	7	-7.5	-0.18
45	$7	327.5	7.28	11	315	7	12.5	0.27

=> Total Cost = Average total cost * Quantity

= 6.42 *30

= 192.6

=> Average total Cost = Total Cost/Quantity

= 227.5/35 = 6.5

=> MC = (162.5 - 135)/(25 - 20)

= 27.5/5

= 5.5

=> Total Revenue = Quantity * Price

=> MC = ( 175 - 140)/(25-20)

= 35/5

= 7

=> Profit = Total Cost - Total Revenue

=> Profit Per Unit = Profit/Quantity

*Profit Maximizing Price = $7

*Profit Maximizing Quantity = 35

Profit Maximizing Condition is MC=MR So At Quantity 35 Mc and MR Both are So It is Profit Maximizing point for choco lover