Price/Output Determination:
Cold Case, Inc., produces beverage containers used by fast food franchises. This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs:
Total Total
Output Cost
0 $ 35
1,000 85
2,000 145
3,000 215
4,000 295
5,000 385
6,000 485
7,000 610
Question 1: Construct a table showing the marginal cost of paper cup productions.
Question 2: What is the minimum price necessary for the company to supply one thousand cups?