Douglas fur is a small manufacturer of fake-fur boots. It is one of many firms selling fake-fur boots. The following table shows its total cost of production
|
Quantity of boots (pairs per hour)
|
Total cost (dollar per hour)
|
|
0
|
120
|
|
1
|
200
|
|
2
|
240
|
|
3
|
285
|
|
4
|
340
|
|
5
|
425
|
|
6
|
540
|
1. What is Douglas Fur's fixed cost?
2. What is the ATC in the short run when 4 pairs of boots are produced?
3. Douglas fur is thinking of increasing its production from 3 to 4 pairs of boots. What would its MC be?
4. If the price of a pair of boots is $49 how many pairs should Douglas fur produce?