a.

i. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow.

Table 1

 

Output     (units)

0

10

18

28

36

45

If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:

total cost in dollars of producing:

18 units

ii. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow.

Table 1

 

Output     (units)

0

10

18

28

36

45

If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:

total cost in dollars of producing:
36 units

b. 

i. Average costs in dollars of producing:
28 units

ii. Average costs in dollars of producing:
45 units

c. What is the marginal cost in dollars of producing 28 units?

d. Determine the profit made from producing 45 units when the market price is fixed at $5.00 per unit.

e. Determine the fixed cost of the firm. Explain your answer.