Table 8-1 Quantity Total Cost (Dollars) Variable

Table 8-1 Quantity Total Cost (Dollars) Variable Cost (Dollars) 0 $1,000 $0 100 1,360 360 200 1,560 560 300 1,960 960 400 2,760 1,760 500 4,000 3,000 600 5,800 4,800

Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plas¬tic camera cases. Assume that output can only be increased in batches of 100 units.More on This Topic......

2) Refer to Table 8-1. If the market price of each camera case is $8 what is the firm’s total revenue? a. $2,400 b. $3,200 c. $4000 d. $4,800 Figure 8-2 3) Refer to Figure 8-2. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units? a. It will be moving toward its profit-maximizing output. b. It makes less profit. c. It incurs a loss. d. Its profit increases by the size of the vertical distance df.More on This Topic......