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Economics

A firm has leased plant and equipment to produce video game cartridges, which can be sold in unlimited quantities at $21 each. The following figures describe the associated costs of production:

Rate of output (per day)	0 1	2	3	4	5	6	7	8
Total cost (per day)	$50 $55	$62	$75	$96	$125	$162	$203	$248

(a) How much are fixed costs?

(b) Draw total revenue and cost curves on the graphs here.

(d) What is the profit-maximizing rate of output?

(e) Should the producer stay in business?

( f ) What is the size of the loss if production continues?

(g) How much is lost if the firm shuts down?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91599147

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