Image transcription text The cost data for a firm producing baseball bats appear below. Of the total cost, $25,600 is fixed at all levels of

Image transcription text The cost data for a firm producing baseball bats appear below. Of the total cost, $25,600 is fixed
at all levels of output. The bats sell for $6.40 each (we assume that the firm is a price taker). “— 4000 $42,400
$44,800
$46,960
$49,120
$51 520
$54,400
$58,000
$62,560
$88,320
$75,520
$84,400
$95 200
$108,180 6000
7000
8000
9000
10000
11000 1 3000
14000 1 6000 a. Construct a table in Excel showing the following series: TFC, TVC, TC, AFC, AVC,
ATC, MC, TR, MR, and profit. b. What is the optimal output? (To answer this question, a precise number is not required, it
is enough to say the interval that contains the optimal output.) c. What are the levels of profit at the endpoints of the interval containing the optimal output
from part (b)? d. If the market price for bats increased to $9.00, what would be the optimal output level?
(Again, a range of values is enough to answer this question.) e. If the market price dropped to $5.50, would the firm make a loss or a profit? Should the
firm continue to produce in the short run at this new price?

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