what are the formulas for each column?what is the profit maximizing output q and p?what is the firms best course of action short and long term? Annual output Fixed cost in Variable Total Costrepairs in 000AverageVarableAverage cost in Marginal cost inS per unit (SAC) S per unit (SMC)PriceMRRevenueProfitSo00cost in S000in S000cost270270270270270270.0427.5600.00.0157.510330.015517.5787.520253035404550560720.0990.0270937.51207.52702702702702702702701170.01440.01687.51417.51680.01950.02227.52520.01957.52250.02557.52827.52880.03150.0

a) Following below are the formula's for each of the following columns; Average variable cost =…

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what are the formulas for each column? what is the profit maximizing output q and p? what is the firms best course of action short and long term?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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Question

what are the formulas for each column?

what is the profit maximizing output q and p?

what is the firms best course of action short and long term?

Annual output Fixed cost in Variable Total Cost
repairs in 000
Average
Varable
Average cost in Marginal cost in
S per unit (SAC) S per unit (SMC)
Price
MR
Revenue
Profit
So00
cost in S000
in S000
cost
270
270
270
270
270
270.0
427.5
600.0
0.0
157.5
10
330.0
15
517.5
787.5
20
25
30
35
40
45
50
5
60
720.0
990.0
270
937.5
1207.5
270
270
270
270
270
270
270
1170.0
1440.0
1687.5
1417.5
1680.0
1950.0
2227.5
2520.0
1957.5
2250.0
2557.5
2827.5
2880.0
3150.0

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