Question 6
Table: Output and Costs
Q=output, FC = fixed cost, VC = variable
cost, TC total cost, MC = marginal cost
FC
VC
TC
MC
1
20
10
30
2
20
18
38
13
3
20
31
17
4
20
68
Reference: Ref 12-11
(Table: Output and Costs) Arlene runs a company in a perfectly competitive industry. Her only fixed cost is $20. Her variable
costs per unit are shown in the table. From the data given, if the current price per unit is $15, how many units should Amy
sell?