What are the firms profit-losses at the level of production

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Reference no: EM13233738

Ball Bearings inc . faces costs of production asfollows:
Quantiy total fixedcosts total variable costs
0 $100 $ 0
1 100 50
2 100 70
3 100 90
4 100 140
5 100 200
6 100 360

A) calculate the company's average fixed costs, a veragevariable costs , average total costs and marginal costs.

b) the price of a case of ball bearings is $50. seeing thatshe can't make a profit , the chief exective officer (CEO)decides to shut down operations. what are the firm's profits/losses? was this a wise decision ? Explian .

C) Vaguely remembering his intoductory economics course, thechief Financial officer tells the CEO it is better to produce 1case of ball bearings , because marginal revenue equals marginalcost at the quantity . what are the firms's profit /losses at thelevel of production ? was this the best decision ? Expalin

Reference no: EM13233738

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