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The Following Table Contains Information for a Price Taking Competitive

question 140

Essay

The following table contains information for a price taking competitive firm. Complete the table and determine the profit maximizing level of output (round your answer to the nearest whole number).
Total Marginal Fixed Average Total Average Marginal
Output Cost Cost Cost Cost Revenue Revenue Revenue
0 25
1 35
2 30
3 45
4 185
5 57
6 120 240


Definitions:

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production of goods or the provision of services.

Machine-Hours

A measure of the amount of time machines are operated in the manufacturing process, often used to allocate overhead costs.

Forming Department

A manufacturing sector focused on shaping or structuring materials into their desired forms.

Assembly Department

A division within a manufacturing plant where components are assembled into final products.

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