Economics Micro Problems

economics_micro_problems.xlsx

Sheet1

Outputs	Price	TFC	TVC	TC	AVC	ATC
0	125			50
1	120			160			fixed costs FC are easy. What are the total costs TC when Q=0 that is fixed costs.
2	115			260			TVC are what are the TC minus FC
3	110			350			AVC what is the AVC / Q
4	105			430			TFC = TC when Q=0
5	100			500			TVC = TC - FC
6	95			560			AVC = VC / Q
7	90			610
8	85			650			finally max profits is where MC = MR or as close as you can get. If you could set 2 < Q < 3 you could increase profits but if you can't then 2 or 3 gets the same profit
9	80			750
10	75			950			marginal revenue, marginal cost and profit.
MPP=

Outputs	Price	TFC	TVC	TC	AVC	ATC	Total Revenue	Marginal Revenue	Marginal Cost	Breakeven price
0	125	50	0	50	0	0	0	0	50	-50
1	120	50	110	160	110	160	120	120	110	-40	fixed costs FC are easy. What are the total costs TC when Q=0 that is fixed costs.
2	115	50	210	260	105	130	230	110	100	-30	TVC are what are the TC minus FC
3	110	50	300	350	100	116.6666666667	330	100	90	-20	AVC what is the AVC / Q
4	105	50	380	430	95	107.5	420	90	80	-10	TFC = TC when Q=0
5	100	50	450	500	90	100	500	80	70	0	TVC = TC - FC
6	95	50	510	560	85	93.3333333333	570	70	60	10	AVC = VC / Q
7	90	50	560	610	80	87.1428571429	630	60	50	20
8	85	50	600	650	75	81.25	680	50	40	30	finally max profits is where MC = MR or as close as you can get. If you could set 2 < Q < 3 you could increase profits but if you can't then 2 or 3 gets the same profit
9	80	50	700	750	77.7777777778	83.3333333333	720	40	100	-30
10	75	50	900	950	90	95	750	30	200	-200	marginal revenue, marginal cost and profit.
Breakeven price= 100
What is Shut down Price= ?
What is the profit maximizing price?
How much profit (loss) will be made?