Economics Micro Problems

Question Outputs Price TFC TVC TC AVC ATC 0 125 50 1 120 160 2 115 260 3 110 350 4 105 430 5 100 500 6 95 560 7 90 610 8 85 650 9 80 750 10 75 950 fixed costs FC are easy. What are the total costs TC when Q=0 that is fixed costs. TVC are what are the TC minus FC AVC what is the AVC / Q TFC = TC when Q=0 TVC = TC – FC AVC = VC / Q finally max profits is where MC = MR or as close as you can get. If you could set 2 < Q < 3 you could increase profits but if you can't then 2 or 3 gets the same profit marginal revenue marginal cost and profit. Outputs Price TFC TVC TC AVC ATC Total Revenue Marginal Revenue Marginal Cost Breakeven price 0 125 50 0 50 0 0 0 0 50 -50 1 120 50 110 160 110 160 120 120 110 -40 2 115 50 210 260 105 130 230 110 100 -30 3 110 50 300 350 100 116.67 330 100 90 -20 4 105 50 380 430 95 107.5 420 90 80 -10 5 100 50 450 500 90 100 500 80 70 0 6 95 50 510 560 85 93.333 570 70 60 10 7 90 50 560 610 80 87.143 630 60 50 20 8 85 50 600 650 75 81.25 680 50 40 30 9 80 50 700 750 77.77778 83.333 720 40 100 -30 10 75 50 900 950 90 95 750 30 200 -200 fixed costs FC are easy. What are the total costs TC when Q=0 that is fixed costs. TVC are what are the TC minus FC AVC what is the AVC / Q TFC = TC when Q=0 TVC = TC - FC AVC = VC / Q finally max profits is where MC = MR or as close as you can get. If you could set 2 < Q < 3 you could increase profits but if you can't then 2 or 3 gets the same profit marginal revenue marginal cost and profit. Breakeven price= 100 What is Shut down Price= ? What is the profit maximizing price? How much profit (loss) will be made?

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