Equipment to produce video game cartridges

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A perfectly competitive firm has leased plant and equipment to produce video game cartridges, which can be sold in unlimited quantities at $21 each. The following figures describe the associated costs of production: Rate of output (per day) 0 1 2 3 4 5 6 7 8 Total cost (per day) $50 $55 $62 $75 $96 $125 $162 $203 $248 (a) How much are fixed costs? Instructions: Enter your response as a whole number. $ (b) Compute total revenue for the table below. Rate of output (per day) 0 1 2 3 4 5 6 7 8 Total revenue (per day) $ $ $ $ $ $ $ $ $ (c) Compute the average total cost (ATC), marginal cost (MC) and demand curve values for the firm below. Rate of output (per day) 0 1 2 3 4 5 6 7 8 Total cost (per day) $50 $55 $62 $75 $96 $125 $162 $203 $248 Average total cost --- $ $ $ $ $ $ $ $ Marginal cost --- $ $ $ $ $ $ $ $ Demand curve $ $ $ $ $ $ $ $ $ (d) What is the profit-maximizing rate of output? units (e) Should the producer stay in business in the short run? No Not enough information Yes (f) What is the size of the loss if production continues? Instructions: Enter your response as a whole positive number. $ loss (g) How much is lost if the firm shuts down? Instructions: Enter your response as a whole positive number. $ loss

Reference no: EM131169190

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