The table below represents the output level of a particular firm producing soft drinks. Use the information in the table to answer the questions that follow...
Question 1 Report
The table below represents the output level of a particular firm producing soft drinks. Use the information in the table to answer the questions that follow.
| output (units) |
| 0 |
| 12 |
| 23 |
| 36 |
| 48 |
| 58 |
Give the cost equation of the firm in Naira as \(C = 20 + 2q\) where \(C\) is total cost and \(q\) is quantity produced, calculate:
(a) The total cost of producing: (i) 12 units of output (ii) 36 units of output.
(b) The average cost when: (i) 48 units were produced (ii) 58 units were produced.
(c) The marginal cost when: (i) 23 units were produced (ii) 36 units were produced.
(d) If the firm is operating in a perfectly competitive market and the market price is N5 per unit, determine the profit when: (i) 23-units are produced (ii) 48 units are produced.
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