Given the Following Fixed and Variable Costs and the Volumes

question 19

Essay

Given the following fixed and variable costs and the volumes, calculate the total and unit costs.
Fixed costs Variable costs Volume in units Total cost Unit cost $$\begin{array} { l l l } \$ 1000 & \$ 12 & 1000 \\\$ 2500 & \$ 17 & 100 \\\$ 500 & \$ 150 & 2 \\\$ 1,500 & \$ 19 & 21 \\\$ 50 & \$ 200 & 50\end{array}$$

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the real profitability of the business.

Loss

The result of a company or individual spending more money than they receive.

Equilibrium

An equilibrium in the market where demand equals supply, causing price stability.

Kinked-demand Model

A model used to explain price stability in oligopolistic markets, suggesting that firms may not change their pricing in response to small changes in costs or demand due to a perceived kink in the demand curve.