Reference no: EM13739836

Market Forms

The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded.

Table 1

Output	Average Fixed cost	Average Variable Cost	Average Total Cost	Marginal Cost	Price	Total Revenue	Marginal Revenue
0					$ 345.00
1	$   180.00	$ 135.00	$    315.00		$ 300.00
2	$     90.00	$ 127.50	$    217.50		$ 249.00
3	$     60.00	$ 120.00	$    180.00		$ 213.00
4	$     45.00	$ 112.50	$    157.50		$ 189.00
5	$     36.00	$ 111.00	$    147.00		$ 165.00
6	$     30.00	$ 112.50	$    142.50		$ 144.00
7	$     25.71	$ 115.70	$    141.41		$ 126.00
8	$     22.50	$ 121.90	$    144.40		$ 111.00
9	$     20.00	$ 130.00	$    150.00		$   99.00
10	$     18.00	$ 139.50	$    157.50		$   87.00

Questions:

1. Complete Table 1. Summarize your calculations and use Microsoft Excel.
2. Using Excel, draw one graph showing average fixed costs, average variable costs, average total costs, marginal revenue, and marginal costs.
3. Using the data in the table and on your graph, what is the profit maximizing, or loss minimizing level of output?  Explain and justify your answers.