10. Problems and Applications Q5Ball Bearings, Inc., faces costs of production as follows:QuantityTotal Fixed CostsTotal Variable Costs(Dollars)(Dollars)01000110050210070310090410014051002006100360Complete the following table by calculating the company’s total cost, marginal cost, average fixed cost, average variable cost, and average total cost at each level of production.
QuantityTotal CostMarginalCostAverage FixedCostAverage VariableCostAverage TotalCost(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)25.00 35.00 60.00 530020.00 40.00 60.00 160646016.67 60.00 76.67 True or False: This was a wise decision. Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.At this level of production, the firm’s profit is True or False: This is the best decision the firm can make. TrueFalse 12. Problems and Applications Q7A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10.The firm’s average revenue is $10, and50 units were sold.13. Problems and Applications Q8A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.Complete the following table by indicating the firm’s profit, marginal cost, and average variable cost. 14. Problems and Applications Q9
Assuming there is no change in either demand or the firms’ cost curves, complete the following table by indicating what will happen to each of the following elements as the market transitions to the long run.Increase DecreasePrice of fertilizerMarginal costAverage total costQuantity supplied by each firm
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