Matthew Rafferty produces hiking boots in the perfectly competitive hiking boot market.
a. Fill in the missing values in the following table:
|
Output per Week
|
Total Cost
|
AFC
|
AVC
|
ATC
|
MC
|
|
0
|
5100.00
|
|
|
|
|
|
1
|
155.70
|
|
|
|
|
|
2
|
205.60
|
|
|
|
|
|
3
|
253.90
|
|
|
|
|
|
4
|
304.80
|
|
|
|
|
|
5
|
362.50
|
|
|
|
|
|
6
|
431.20
|
|
|
|
|
|
7
|
515.10
|
|
|
|
|
|
8
|
618.40
|
|
|
|
|
|
9
|
745.30
|
|
|
|
|
|
10
|
900.00
|
|
|
|
|
b. Suppose the equilibrium price in the hiking boot market is $100. How many boots should Rafferty produce, what price should he charge, and how much profit will he make?
c. If next week the equilibrium price of boots drops to $65, how many boots should Rafferty produce, what price should he charge, and how much profit (or loss) will he make?
d. If the equilibrium price of boots falls to $50, how many boots should Rafferty produce, what price should he charge, and how much profit (or loss) will he make?