The spreadsheet below gives some of Redstone's production cost data. A template for the spreadsheet is provided in the Course Materials. Add columns to show, respectively, average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and short-run marginal cost (SMC). Then, add columns to show, respectively, total revenue (TR), marginal revenue (MR), total profit, average profit, and profit margin.
Assume that the world market demand and supply curves for clay fire pots intersect at $190 per unit.
How do I get started and where do I get the numbers from to get the required extra columns?
|
Q
|
TC
|
TFC
|
TVC
|
|
0
|
7,000
|
7,000
|
-
|
|
100
|
14,000
|
7,000
|
7,000
|
|
200
|
23,000
|
7,000
|
16,000
|
|
300
|
32,000
|
7,000
|
25,000
|
|
400
|
43,000
|
7,000
|
36,000
|
|
500
|
52,000
|
7,000
|
45,000
|
|
600
|
74,000
|
7,000
|
67,000
|
|
700
|
97,000
|
7,000
|
90,000
|
|
800
|
111,000
|
7,000
|
104,000
|
|
900
|
132,000
|
7,000
|
125,000
|
|
1000
|
152,000
|
7,000
|
145,000
|