Econ 4th Edition

THESHORT-RUN FIRM SUPPLY CURVE 

Use the following data to answer the questions below 

 AVC 

 VC 

 $10 

 $16 

 $20 

 $25 

 $31 

 $38 

 MC 

 $55 

 a. Calculate the marginal cost and average variable cost for each rate of output 

 b. How much would the firm produce if it could sell its product for $5? For $7? For $1 0? 

 c. Explain your answers 

 d. Assuming that its fixed cost is$3, calculate the firm1’s economic profit at each output rate determined in part (b)