Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry.Table 9-5 shows the firm's cost schedule.
Table 9-5
$\begin{array}{|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { (cases) }
\end{array} & \begin{array}{c}
\text { Variable } \
\text { Cost }
\end{array} & \text { Total Cost } & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Variable } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Total Cost }
\end{array} \
\hline 0 & \$ 0 & \$ 76 & & & \
\hline 1 & 30 & 106 & & & \
\hline 2 & 50 & & & & \
\hline 3 & & 134 & & & \
\hline 4 & & 140 & & & \
\hline 5 & & 160 & & & \
\hline 6 & 114 & & & & \
\hline 7 & 150 & & & & \
\hline 8 & 190 & & & & \
\hline 9 & & 316 & & & \
\hline
\end{array}$
Use the table to answer the following questions.
a.Complete Table 9-5 by filling in the blank cells.
b.Werner is selling in a perfectly competitive market at a price of $40.What is the profit maximizing or loss-minimizing output?
c.Calculate the firm's profit or loss.
d.Should the firm continue to produce in the short run? Explain.
e.If the firm's fixed costs were $30 higher what would be the profit-maximizing output level in the short run? Indicate whether the output level will increase,decrease,or remain unchanged compared to your answer in b.
f.Suppose fixed cost remains at $76.If the price of three-ring binders falls to $20 what is the profit-maximizing or loss-minimizing output?
g.Calculate the profit or loss.Should the firm continue to produce in the short run? Explain your answer.
h.Suppose the fixed cost remains at $76.What price corresponds to the shut-down point?
i.Suppose the fixed cost remains at $76.What price corresponds to the break-even point?

Question

Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry.Table 9-5 shows the firm's cost schedule.
Table 9-5
 $\begin{array}{|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { (cases) }
\end{array} & \begin{array}{c}
\text { Variable } \
\text { Cost }
\end{array} & \text { Total Cost } & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Variable } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Total Cost }
\end{array} \
\hline 0 & \$ 0 & \$ 76 & & & \
\hline 1 & 30 & 106 & & & \
\hline 2 & 50 & & & & \
\hline 3 & & 134 & & & \
\hline 4 & & 140 & & & \
\hline 5 & & 160 & & & \
\hline 6 & 114 & & & & \
\hline 7 & 150 & & & & \
\hline 8 & 190 & & & & \
\hline 9 & & 316 & & & \
\hline
\end{array}$ 
Use the table to answer the following questions.
a.Complete Table 9-5 by filling in the blank cells.
b.Werner is selling in a perfectly competitive market at a price of $40.What is the profit maximizing or loss-minimizing output?
c.Calculate the firm's profit or loss.
d.Should the firm continue to produce in the short run? Explain.
e.If the firm's fixed costs were $30 higher what would be the profit-maximizing output level in the short run? Indicate whether the output level will increase,decrease,or remain unchanged compared to your answer in b.
f.Suppose fixed cost remains at $76.If the price of three-ring binders falls to $20 what is the profit-maximizing or loss-minimizing output?
g.Calculate the profit or loss.Should the firm continue to produce in the short run? Explain your answer.
h.Suppose the fixed cost remains at $76.What price corresponds to the shut-down point?
i.Suppose the fixed cost remains at $76.What price corresponds to the break-even point?

Quizplus · Accepted Answer

The Answer of Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry.Table 9-5 shows the firm's cost schedule.
Table 9-5
 $\begin{array}{|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { (cases) }
\end{array} & \begin{array}{c}
\text { Variable } \
\text { Cost }
\end{array} & \text { Total Cost } & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Variable } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Average } \
\text { Total Cost }
\end{array} \
\hline 0 & \$ 0 & \$ 76 & & & \
\hline 1 & 30 & 106 & & & \
\hline 2 & 50 & & & & \
\hline 3 & & 134 & & & \
\hline 4 & & 140 & & & \
\hline 5 & & 160 & & & \
\hline 6 & 114 & & & & \
\hline 7 & 150 & & & & \
\hline 8 & 190 & & & & \
\hline 9 & & 316 & & & \
\hline
\end{array}$ 
Use the table to answer the following questions.
a.Complete Table 9-5 by filling in the blank cells.
b.Werner is selling in a perfectly competitive market at a price of $40.What is the profit maximizing or loss-minimizing output?
c.Calculate the firm's profit or loss.
d.Should the firm continue to produce in the short run? Explain.
e.If the firm's fixed costs were $30 higher what would be the profit-maximizing output level in the short run? Indicate whether the output level will increase,decrease,or remain unchanged compared to your answer in b.
f.Suppose fixed cost remains at $76.If the price of three-ring binders falls to $20 what is the profit-maximizing or loss-minimizing output?
g.Calculate the profit or loss.Should the firm continue to produce in the short run? Explain your answer.
h.Suppose the fixed cost remains at $76.What price corresponds to the shut-down point?
i.Suppose the fixed cost remains at $76.What price corresponds to the break-even point?

Werner & Sons Is a Manufacturer of Three-Ring Binders Operating