6.No. ofCOWS(Head)0255075100125150175200225250275If the price of beef was $98.00 what is the optimum number of cows and the profit or loss at thatnumber and price?Output(cwt. ofbeef)0104220322413494568629676710730737TotalTotal Average Average Average Marginal Marginal Total Total ProfitCost Variable FixedRevenue RevenueFixedTotalCostCostCostsCostsCost20,00020,000XXXXXXXXX20,000 24,500 43.27192.31235.5890.91131.8220,000 29,000 40.9120,000 33,500 41.9362.11104.0420,000 38,00043.5848.4392.0145.5540.4986.0320,000 42,50047,00027,000 20,00047.5435.2182.7520,000 51,50050.0831.8081.8831,50036,000 20,000 56,00053.2529.5982.8457.0428.1785.2140,500 20,000 60,50045,000 20,000 65,00061.6427.4089.0449,50020,00069,50067.1627.1494.30TotalVariableCost04,5009,00013,50018,00022,500Ans.Ans.XXX43.2738.7944.1249.4555.5660.8173.7795.74132.35225.00642.8698.0098.0098.0098.0098.0098.0098.0098.0098.0098.0098.0098.00Cows01019221560315564047448412556646164266248695807154072226Profit or loss-20,000-14,308-7,440-1,9442,4745,9128,66410,14210,2489,0806,5402,726

Total revenue determines the amount earned from the quantity produced.Economic costs involve not…

6. No. of COWS (Head) 0 25 50 75 100 125 150 175 200 225 250 275 If the price of beef was $98.00 what is the optimum number of cows and the profit or loss at that number and price? Total Output (cwt. of Variable Cost 0 beef) 0 104 220 322 413 494 568 629 676 710 730 737 4,500 9,000 Total Fixed Cost 20,000 20,000 Total Average Average Average Marginal Marginal Total Total Profit Cost Revenue Variable Fixed Total Cost Revenue Costs Cost Costs XXX 20,000 XXX XXX 192.31 235.58 24,500 43.27 40.91 33,500 41.93 90.91 62.11 48.43 40.49 35.21 31.80 29.59 28.17 27.40 27.14 20,000 29,000 13,500 20,000 18,000 20,000 38,000 22,500 20,000 42,500 27,000 20,000 47,000 31,500 20,000 51,500 36,000 20,000 56,000 53.25 57.04 40,500 20,000 60,500 45,000 20,000 65,000 49,500 20,000 69,500 61.64 67.16 43.58 45.55 47.54 50.08 131.82 38.79 104.04 44.12 92.01 49.45 55.56 60.81 73.77 95.74 86.03 82.75 81.88 82.84 85.21 89.04 94.30 Ans. XXX 43.27 Ans. ... 132.35 225.00 642.86 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 Cows 0 -20,000 10192 -14,308 21560 -7,440 31556 -1,944 40474 2,474 48412 5,912 55664 8,664 61642 10,142 66248 10,248 69580 9,080 71540 6,540 72226 2,726 Profit or loss

6. No. of COWS (Head) 0 25 50 75 100 125 150 175 200 225 250 275 If the price of beef was $98.00 what is the optimum number of cows and the profit or loss at that number and price? Total Output (cwt. of Variable Cost 0 beef) 0 104 220 322 413 494 568 629 676 710 730 737 4,500 9,000 Total Fixed Cost 20,000 20,000 Total Average Average Average Marginal Marginal Total Total Profit Cost Revenue Variable Fixed Total Cost Revenue Costs Cost Costs XXX 20,000 XXX XXX 192.31 235.58 24,500 43.27 40.91 33,500 41.93 90.91 62.11 48.43 40.49 35.21 31.80 29.59 28.17 27.40 27.14 20,000 29,000 13,500 20,000 18,000 20,000 38,000 22,500 20,000 42,500 27,000 20,000 47,000 31,500 20,000 51,500 36,000 20,000 56,000 53.25 57.04 40,500 20,000 60,500 45,000 20,000 65,000 49,500 20,000 69,500 61.64 67.16 43.58 45.55 47.54 50.08 131.82 38.79 104.04 44.12 92.01 49.45 55.56 60.81 73.77 95.74 86.03 82.75 81.88 82.84 85.21 89.04 94.30 Ans. XXX 43.27 Ans. ... 132.35 225.00 642.86 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 98.00 Cows 0 -20,000 10192 -14,308 21560 -7,440 31556 -1,944 40474 2,474 48412 5,912 55664 8,664 61642 10,142 66248 10,248 69580 9,080 71540 6,540 72226 2,726 Profit or loss

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

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