How does that compare to profit at other levels of output

Reference no: EM13205795

Consider the following table of costs for the Winsome Widget Factory, which operates in a perfectly competitive market. The market price faced by this firm is $6.00 per widget.

a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit at the top of the column in the gray section within the table.

b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR, and Total Profit in the blue sections of the table. Winsome Widget Factory Output Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost Total Revenue Marginal Revenue Total Profit 0 $100 10 150 20 180 30 200 40 240 50 300 60 375 70 475 80 600 90 750 100 1,000

c. Determine the profit maximizing level of output. Explain how you arrived at that conclusion.

d. What is the total profit at the profit maximizing level of output? How does that compare to profit at other levels of output?

e. What is the lowest price that Winsome Widgets will accept and continue to produce in the short run? Explain.

Reference no: EM13205795

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