Question

cost of production

Ball Bearings inc . faces costs of production asfollows:Quantiytotal fixedcoststotal variablecosts0$100$0110050210070310090410014051002006100360A) calculate the company's average fixed costs, a veragevariable costs , average total costs and marginal costs.b) the price of a case of ball bearings is $50. seeing thatshe can't make a profit , the chief exective officer (CEO)decides to shut down operations. what arethe firm's profits/losses? was this a wise decision ? Explian .C) Vaguely remembering his intoductory economics course, thechief Financial officer tells the CEO it is better to produce 1case of ball bearings , because marginalrevenue equals marginalcost at the quantity . what are the firms's profit /losses at thelevel of production ? was this the best decision ? Expalin
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