The AAA Aquarium Co. sells aquariums for $20 each. Fixed costs of production are $20. The...

The AAA Aquarium Co. sells aquariums for $20 each. Fixed costs of production are $20. The total variable costs are $20 for one aquarium, $25 for two units, $35 for the three units, $50 for four units, and $80 for five units. Create a table showing total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the minimum level of output for AAA to produce and not lose money? What is the profit-maximizing level of output?

Expert Solution

Rahul Sunny answered 1 year ago

Kent Co. manufactures a product that sells for $52.00. Fixed costs are $270,000 and variable costs...

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Assume the market for watermelons is perfectly competitive. AAA Watermelon Company has fixed costs of $30, and total variable costs at $10 for one truckload of watermelons, $25 for two truckloads of watermelons, $45 for the three truckloads of watermelons, $70 for four truckloads of watermelons, $100 for five truckloads of watermelons, and $135 for six truckloads of watermelons. Set out in a table, total cost, average cost, marginal cost for each output level (one to six units) for AAA...

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