Problem: Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to $150 to $180, where q is quantity and C is total cost. Assume that the price of output is $54.
|
q
|
MC
|
C(FC = $100)
|
C(FC = $150)
|
C(FC = $180)
|
|
0
|
-
|
100
|
150
|
180
|
|
1
|
50
|
150
|
200
|
230
|
|
2
|
28
|
178
|
228
|
258
|
|
3
|
20
|
198
|
248
|
278
|
|
4
|
14
|
212
|
262
|
292
|
|
5
|
18
|
230
|
280
|
310
|
|
6
|
20
|
250
|
300
|
330
|
|
7
|
22
|
272
|
322
|
352
|
|
8
|
38
|
310
|
360
|
390
|
|
9
|
45
|
355
|
405
|
435
|
|
10
|
55
|
410
|
460
|
490
|
|
11
|
65
|
475
|
525
|
555
|
If the fixed cost of production is $100, then output will be 9 units and profit will be?