Suppose rocking chair manufacturing is a perfectly competitive industry in which there are 1,000 identical firms. Each firm's total cost isrelated to output per day as follows:Output Total Revenue ($) Total Variable Cost ($) Total Fixed Cost ($)11,00075050022,0001,25050033,0002,00050044,0003,00050055,0004,500500How many chairs would the firm produce at prices of $1,000? (In computing quantities, assume that a firmproduces a certain number of completed chairs each day; it does not produce fractions of a chair on any one day.)chairs

Given a price of $1,000, the firm in the perfectly competitive rocking chair industry would optimize…

Answered: Suppose rocking chair manufacturing is…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 2MC

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The table gives some of the costs of the Delicious Pie Company. The marginal cost per pie of increasing the output of pies from 100 to 200 is Total variable cost (dollars) Output (pies) 0 100 200 300 400 $8.00 $600 $6.00 $5.00 0 400 1,000 1,800 2,800 Total cost (dollars) 300 700 1300 2100 3100 ?
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