Problem - To make a little extra money, Foster knits berets for cats and sells them on Etsy. The table below gives some information on the costs of running this business.
|
Q
|
Total Cost (TC)
|
Fixed Cost (FC)
|
Variable Cost (VC)
|
Marginal Cost (MC)
|
Average Variable Cost (AVC)
|
|
0
|
4
|
|
0
|
-
|
-
|
|
1
|
34
|
|
|
30
|
30
|
|
2
|
68
|
|
64
|
|
32
|
|
3
|
106
|
|
|
38
|
|
a. Fill in the blank cells of the table above.
b. If Foster finds that he can sell as many cat berets as he want at $36 each, how many will he sell? What will his total cost, total revenue, and profit be?
c. Repeat part b, for a price of $34.
d. Repeat part b, for a price of $28.
e. Suppose there are many sellers with the same costs as Foster. If there are 24 people on Etsy willing to buy 1 cat beret each for $34, how many people will choose to sell cat berets?