Question

Pleaseee help me

Output Total Revenue Total Variable Cost Total Fixed Cost
1 $1 000 $1 500 $500
2 $2 000 $2 000 $500
3 $3 000 $2 600 $500
4 $4 000 $3 900 $500
5 $5 000 $5 000 $500


1. How much are total fixed costs?
2. About how much are total variable costs if 5,000 paper clips are produced?
3. What is the price of a paper clip?
4. What is the average revenue from producing paper clips?
5. What is the marginal revenue of producing paper clips?
6. Over what output range will this firm earn economic profits? 7. Over what output range will this firm incur economic losses? 8. What is the slope of the total revenue curve?
9. What is the slope of the total cost curve at the profit-maximizing number of paper clips per hour?
10. At about how many paper clips per hour do economic profits seem to be at a maximum?

Answer 1

Ответ:

1. Total fixed costs are $500.

2. Total variable costs for producing 5,000 paper clips are $5,000.

3. The price of a paper clip cannot be determined with the given information.

4. Average revenue is total revenue divided by the quantity. Here, it would be $5,000 / 5, which is $1,000.

5. Marginal revenue is the change in total revenue when one more unit is produced. Here, it's the difference between the total revenues of producing 5,000 and 4,000 paper clips, which is $1,000.

6. The firm will earn economic profits over the output range where total revenue exceeds total cost.

7. The firm will incur economic losses over the output range where total cost exceeds total revenue.

8. The slope of the total revenue curve is the price per unit, which cannot be determined without additional information.

9. The slope of the total cost curve at the profit-maximizing quantity represents the marginal cost.

10. The profit-maximizing quantity cannot be determined with the given information. Economic profits are maximized where marginal cost equals marginal revenue.