Calculate marginal cost for each quantity. in the long run, Ask an Expert

Economics

describe the reason why a competitive firm should stop producing immediately if the price is lower than the average variable cost.

Consider the following table.

Quatitity Total cost
1 $10
2 12
3 16
4 22
5 30
6 40
7 52
8 66

(1) find out marginal cost for each quantity.
(2) Suppose that the price of the product is $10. How many units will the firm produce?
(3) In the long run, will the price rise or fall from the current level at $10? describe the reason.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M968277

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