Economics Average Fixed cost

The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded.

Table 1

Output
Average Fixed cost

Average Variable Cost

Average Total Cost

Marginal Cost

Price

Total Revenue

Marginal Revenue

0

$ 345.00

1

$ 180.00

$ 135.00

$ 315.00

$ 300.00

2

$ 90.00

$ 127.50

$ 217.50

$ 249.00

3

$ 60.00

$ 120.00

$ 180.00

$ 213.00

4

$ 45.00

$ 112.50

$ 157.50

$ 189.00

5

$ 36.00

$ 111.00

$ 147.00

$ 165.00

6

$ 30.00

$ 112.50

$ 142.50

$ 144.00

7

$ 25.71

$ 115.70

$ 141.41

$ 126.00

8

$ 22.50

$ 121.90

$ 144.40

$ 111.00

9

$ 20.00

$ 130.00

$ 150.00

$ 99.00

10

$ 18.00

$ 139.50

$ 157.50

$ 87.00

Questions:

Complete Table 1. Summarize your calculations and use Microsoft Excel.
Using Excel, draw one graph showing average fixed costs, average variable costs, average total costs, marginal revenue, and marginal costs.
Using the data in the table and on your graph, what is the profit maximizing, or loss minimizing level of output? Explain and justify your answers.
What is a normal profit? What is an economic profit? Explain your answer using examples. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
Given the data in the table and the graph, how could you determine or identify the optimal plant size?
What is the difference between explicit and implicit cost? Explain your answers.
How would we determine if a cost is a fixed cost or a variable cost?
Present your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes. If you want to learn how to use Microsoft Excel to create curves, refer to the Microsoft Excel tutorials.

Submit your documents to the W4: Assignment 2 Dropbox by Tuesday, March 3, 2015.

Assignment 2 Grading Criteria
Maximum Points
Correctly answered all parts of Question 1 and completed Table 1
10
Correctly created a graph showing all required data from Question 2
6
Correctly answered all parts of Question 3, with accurate and complete explanations
6
Correctly answered all parts of Question 4, with accurate and complete explanations
6
Correctly answered all parts of Question 5, with accurate and complete explanations
6
Correctly answered all parts of Question 6 and 7, with accurate and explanations
6
Wrote in a clear and concise manner following APA standards, and demonstrated ethical scholarship in accurate representation of sources
10
Total:
50