Explore BrainMass
Share

# Marginal Cost and an Average Cost Schedule

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Assume that a firm in a perfectly competitive industry has the following total cost schedule:

Output (units) Total Cost (\$)
10 \$110
15 150
20 180
25 225
30 300
35 385
40 480

a. Calculate a marginal cost and an average cost schedule for the firm.
b. If the prevailing market price is \$17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits?
c. Is the industry in long-run equilibrium at this price?

https://brainmass.com/economics/general-equilibrium/marginal-cost-and-an-average-cost-schedule-69981

#### Solution Preview

Hello!

Question a
Output (units) Total Cost (\$) Marginal Cost(\$) Average Cost (\$)
10 \$110
15 150 8 10
20 180 6 9
25 225 9 9
30 300 ...

#### Solution Summary

The solution calculates a marginal cost and an average cost schedule as well as answering questions on profits per unit and long-run equilibrium.

\$2.19
Similar Posting

## Use the following data of a firm's total cost schedules to calculate its average variable cost, average fixed cost, average total cost, and marginal cost schedules

Use the following data of a firm's total cost schedules to calculate its average variable cost, average fixed cost, average total cost, and marginal cost schedules.

Output Total Cost Total Variable Cost Total Fixed Cost
1 \$2075.00 \$ 75.00 \$2000.00
2 2140.00 140.00 2000.00
3 2180.00 180.00 2000.00
4 2280.00 280.00 2000.00
5 2400.00 400.00 2000.00

View Full Posting Details