ECON 213 Principles of Economics Pearl owns a company that produces Super Toys Answer

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ECON 213 Principles of Economics Pearl owns a company that produces Super Toys Answer

ECON 213 Principles of Economics Pearl owns a company that produces Super Toys Answer

ECON 213 PRINCIPLES OF MICROECONOMICS
WINTER 2010
Labor Output Total Cost Marginal Average Total Revenue
(TC) Cost (MC) Cost P=125
0 0 $3,000.00 $ –
1 10 $4,250.00 $125.00 $425.00 $1,250.00
2 25 $5,500.00 $83.33 $220.00 $3,125.00
3 45 $6,750.00 $62.50 $150.00 $5,625.00
4 70 $8,000.00 $50.00 $114.29 $8,750.00
5 95 $9,250.00 $50.00 $97.37 $11,875.00
6 115 $10,500.00 $62.50 $91.30 $14,375.00
7 133 $11,750.00 $69.44 $88.35 $16,625.00
8 149 $13,000.00 $78.13 $87.25 $18,625.00
9 164 $14,250.00 $83.33 $86.89 $20,500.00
10 174 $15,500.00 $125.00 $89.08 $21,750.00
11 182 $16,750.00 $156.25 $92.03 $22,750.00
12 188 $18,000.00 $208.33 $95.74 $23,500.00
13 192 $19,250.00 $312.50 $100.26 $24,000.00

Pearl owns a company that produces Super Toys. The table above shows that
Pearls’ Fixed Cost is $3000.00. Pearl pays $1,250 for each unit of labor. Marginal
and Average Costs of production are show n in the table. If Pearl conducts
business in a Perfectly Competitive Market where the price of each toy sold is
$125.00:
What is Pearl’s Marginal Revenue for each additional unit of Super Toy sold?

What is the Profit Maximizing number of Toys that Pearl should produce?

What is the Total Profit at this Profit Maximizing number of toys?

 

 

ECON 213 Principles of Economics Pearl owns a company that produces Super Toys Answer