Question

please fill in the empty spot on the table! also can you show me the equation on how to find them? THANKS

Perfect Competition Price of output Fixed costs: $10 $200 Avg Avg Variable Avg Fixed Total Cost Variable Total Total Fixed Marginal Marginal Cost Cost Revenue Revenue Output Cost Cost Cost Cost $0 $0 X $50 $250 $20.00 $100 10 $90 $4.50 $5 33 $14.50 $200 20 $160 $360 $6.67 $300 30 $225 $10.63 $400 40 $300 $500 $6.00 $4.00 $500 50 $395 $9.92 $600 60 $710 $729 70 $510 $2.86 $700 $8.00 $1050 80 $640 1. What is the profit-maximizing level of output? $800 2. What are profits at this point? Monopoly Avg Variable Avg Fixed Total Cost Avg Total Cost Variable Fixed Price Total Marginal Marginal Revenue Revenue Output s0 Cost Cost Cost Cost Cost $200 $18 50 hint: copy all the costs from the previous table- these did not change) $50 $20.00 $17 10 $14 50 $90 $160 $290 $4.50 $5 33 $16 20 $667 $15 30 $10.63 40 $225 $425 $14 $4.00 $13 $12 $11 $10 50 $300 $6.00 $395 $9.92 $720 $770 60 $510 $640 1 What is the profit-maximizing level of output? $710 $7.29 $286 70 80 $8.00 $10.50 $800 2. What are profits at this point?

Answer 1

TR = Price * Quantity

MR = TR_N - TR_N-1

Total cost = Fixed cost + Variable cost

Average fixed cost = Fixed cost / Output

Average variable cost = Variable cost / Output

Average total cost = Total cost / Output

Output	Variable cost	Fixed cost	Total cost	Avg variable cost	Avg fixed cost	Avg total cost	Total revenue	Marginal revenue	Marginal cost	Profit
0	0	200	200	-	-	-	0	-	-	-200
10	50	200	250	5.00	20.00	25.00	100	100	50	-150
20	90	200	290	4.50	10.00	14.50	200	100	40	-90
30	160	200	360	5.33	6.67	12.00	300	100	70	-60
40	225	200	425	5.63	5.00	10.63	400	100	65	-25
50	300	200	500	6.00	4.00	10.00	500	100	75	0
60	395	200	595	6.58	3.33	9.92	600	100	95	5
70	510	200	710	7.29	2.86	10.14	700	100	115	-10
80	640	200	840	8.00	2.50	10.50	800	100	130	-40

Profit is maximum when 60 units are produced. At this level there is a profit of 5.

Output	Variable cost	Fixed cost	Total cost	Avg variable cost	Avg fixed cost	Avg total cost	Price	Total revenue	Marginal revenue	Marginal cost	Profit
0	0	200	200	-	-	-	18	0	-	-	-200
10	50	200	250	5.00	20.00	25.00	17	170	170	50	-80
20	90	200	290	4.50	10.00	14.50	16	320	150	40	30
30	160	200	360	5.33	6.67	12.00	15	450	130	70	90
40	225	200	425	5.63	5.00	10.63	14	560	110	65	135
50	300	200	500	6.00	4.00	10.00	13	650	90	75	150
60	395	200	595	6.58	3.33	9.92	12	720	70	95	125
70	510	200	710	7.29	2.86	10.14	11	770	50	115	60
80	640	200	840	8.00	2.50	10.50	10	800	30	130	-40

Profit is maximized when 50 units are produced and the profit level is 150.