Explore BrainMass

Price/Output Determination

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

Price/Output Determination.

Cold Case, Inc., Produces beverage containers used by fast food franchises. This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs:
Total Output Total Cost
___________ ___________
0 $35
1,000 85
2,000 145
3,000 215
4,000 295
5,000 385
6,000 485
7,000 610

A. Construct a table showing the marginal cost of paper cup production.
B. What is the minimum price necessary for the company to supply one thousand cups?
C. How many cups would the company supply at industry prices of $75 and $100 per thousand?

© BrainMass Inc. brainmass.com March 21, 2019, 2:51 pm ad1c9bdddf

Solution Preview

See the attached file. If these answers differ from yours, let me know ...