Question: question 11 in a perfectly competitive cupcake market a company...
Question details
Question 11.
In a perfectly competitive cupcake market, a company produces cupcakes:
|
Cupcake per week (Q) |
Fixed costs (FC) |
Variable costs (VC) |
Total costs (TC) |
Marginal costs (MC) |
Average total costs (ATC) |
Average variable costs (AVC) |
|
0 |
$1,000 |
$0 |
|
N/A |
N/A |
N/A |
|
100 |
$1,000 |
$360 |
|
|
|
|
|
200 |
|
$840 |
|
|
|
|
|
300 |
|
$1,440 |
|
|
|
|
|
400 |
|
$2,160 |
|
|
|
|
|
500 |
|
$3,000 |
|
|
|
|
|
600 |
|
$3,960 |
|
|
|
|
|
700 |
|
$5,040 |
|
|
|
|
|
800 |
|
$6,240 |
|
|
|
|
|
900 |
|
$7,560 |
|
|
|
|
|
1000 |
|
$9,000 |
|
|
|
|
a. Fill in the missing values in the table.
b. Suppose the equilibrium price in the pizza market is $12. How many pizzas per week should the firm produce, and how much profit per week will the firm make?
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