Instructions. If you are asked to find a relationship, you may use algebra and/or plot at least two points and draw the curve. In all cases please be sure to explain how you got your answer and the reasoning justifying your approach. If you do not have enough information to answer a question, please describe what information you need and exactly how you would use it. Unless otherwise specified, please assume that all units are infinitely divisible. If you need an interest rate, explain how such a rate would be chosen in the context and use 10%.
The hypothetical cost data for a competitive gold miner was given by:
Weekly output in ounces Weekly total cost
0 570
1 810
2 1000
3 1240
4 1530
5 1920
6 2410
7 3000
8 3690
9 4480
The price at which the miner sold is $600 per ounce.
A) Please make a table in the above form but showing FC (fixed cost), VC (variable cost), AC (average cost), MC (marginal cost), MR (marginal revenue) and find the profit maximizing level of output.
B) In the general context of this question what would be the supply curve of the firm.