(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $35,how many tubs of ice cream will Sergei produce in the short run?

A) 1
B) 2
C) 3
D) 4

Question

ayshaft haque · Accepted Answer

Final Answer : C, Explanation :  To determine how many tubs of ice cream Sergei will produce, look at the column for Total Cost at a market price of $35. At an output of 3 tubs of ice cream, the total cost is $105 ($35 per tub x 3 tubs). This is the minimum point on the AVC curve (average variable cost), indicating that Sergei can minimize losses by producing 3 tubs. At any output level below 3 tubs, his total variable costs would still exceed his total revenue and he would incur losses. Therefore, the best choice is to produce 3 tubs in the short run.

(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $35,how many tubs of ice cream will Sergei produce in the short run?

A) 1
B) 2
C) 3
D) 4

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $35,how many tubs of ice cream will Sergei produce in the short run?A) 1B) 2C) 3D) 4

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $35,how many tubs of ice cream will Sergei produce in the short run?

A) 1
B) 2
C) 3
D) 4