A firm's cost curves are given in the following table.
q TC TFC TVC AVC ATC MC
0 $100 100 0 0 0 0
1 130 100 30 30 130 30
2 150 100 50 25 75 20
3 160 100 60 20 53.3 10
4 172 100 72 18 43 12
5 185 100 85 17 37 13
6 210 100 110 18.3 35 25
7 240 100 140 20 34 30
8 280 100 180 22.5 35 40
9 330 100 230 25.55 36.7 50
10 390 100 290 29 39 60
Graph AVC, ATC,and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC?
Suppose market price is $30. How much will the firm produce in the short run? What are total profits?
Suppose market price is $50. How much will the firm produce in the short run? What are total profits?