Determine the average total cost and marginal cost schedules for the firm and complete the following table.
Output
Variable Cost
(Pound/Period) (Per Pound)
Total Cost
($/Period)
Marginal Cost
($/Period)
0
0
0
1,000
10.00
24,000
24.00
2,000
8.50
3,000
7.33
4,000
6.25
5,000
5.40
6,000
5.00
7,000
5.14
8,000
5.88
9,000
7.00
Exotic Metals maximizes profits when the price is $
per pound and the output level is
pounds per period.
What is Exotic's profit (or loss) at the profit-maximizing output level? $
Suppose that the federal government announces it will sell beryllium, from its extensive wartime stockpile, to anyone who wants
it at $5.98 per pound. Under these conditions, Exotic Metals maximizes profits by producing
pounds per period.