The table below represents the output level of a particular firm producing soft drinks. Use the information in the table to answer the questions that follow. 

output (units)
0
12
23
36
48
58


Give the cost equation of the firm in Naira as C = 20 + 2q where C is total cost and q is quantity produced, calculate:
(a) The total cost of producing: (i) 12 units of output (ii) 36 units of output.
(b) The average cost when: (i) 48 units were produced (ii) 58 units were produced.
(c) The marginal cost when: (i) 23 units were produced (ii) 36 units were produced.
(d) If the firm is operating in a perfectly competitive market and the market price is N5 per unit, determine the profit when: (i) 23-units are produced (ii) 48 units are produced.

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Discussions (4)

gideonokhuevbie
6 years ago

(c)(ii) Marginal cost when 36 units are produced
MC= TC2−TC1/Q2−Q1
At 36 units;
TC2 = N92
TC1 = N66
Q2 = 36 units
Q1 - 23 units
MC = 92−66/36−23
= 26/13
= 2

asherah
3 months ago

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asherah
3 months ago

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