Tinley Paper, Inc. produces uncoated paper used in a wide variety of industrial applications. Newsprint, a major product, is sold in a perfectly competitive market. The following relation exists between the firm's newsprint output and total production costs:
Total Output (tons) Total Cost ($)
A. Construct a table showing Tinley's marginal cost of newsprint production.
B. What is the minimum price necessary for Tinley to supply 1 ton of newsprint?
C. How much newsprint would Tinley supply at industry prices of $75 and $100
Please refer attached file for better clarity of tables.
A.Construct a table showing Tinley's marginal cost of newsprint production.
Total Output (tons) Total Cost ($) Marginal Cost ($)
0 25 -
1 75 50
Solution describes the steps in findind marginal cost of production for various production levels. It also describes the steps to find out the supplt that Tinely Paper can make for a given market price.