Class 9 Homework-

Table shows the demand schedule for Lin’s Fortune Cookies. Table shows some cost data for Lin’s. Use this information to work Problems (Hint: Make a sketch of Lin’s short-run cost curves.)

Price (dollars per batch)

Quantity demanded (batches per day)

50

0

50

1

50

2

50

3

50

4

50

5

50

6

Quantity (batches per day)

AFC 

AVC 

 ATC

 MC

 

(dollars per batch)

1

84.0

51.0

135

 

 

 

 

 

37

2

42.0

44.0

86

 

 

 

 

 

29

3

28.0

39.0

67

 

 

 

 

 

27

4

21.0

36.0

57

 

 

 

 

 

32

5

16.8

35.2

52

 

 

 

 

 

40

6

14.0

36.0

50

 

 

 

 

 

57

7

12.0

39.0

51

 

 

 

 

 

83

8

10.5

44.5

55

 

At a market price of $50 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run?




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