Parts A and B - on the basis of the following cost data
Question # 00488320
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Updated on: 02/22/2017 12:23 AM Due on: 02/22/2017
TCO C) Answer the next questions (Parts A and B) on the basis of the following cost data for a firm operating in pure competition. (20 points)
(Part A) Refer to the above data. If the product price is $75 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. (10 points)
(Part B) Refer to the above data. If the product price is $100 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. (10 points) (Points : 20)
| 0 | $200.00 | 0.00 |
| 1 | $200.00 | 50.00 |
| 2 | $200.00 | 120.00 |
| 3 | $200.00 | 200.00 |
| 4 | $200.00 | 300.00 |
| 5 | $200.00 | 450.00 |
| 6 | $200.00 | 650.00 |
(Part A) Refer to the above data. If the product price is $75 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. (10 points)
(Part B) Refer to the above data. If the product price is $100 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. (10 points) (Points : 20)
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Solution: Parts A and B - on the basis of the following cost data