Economics Questions and Answers

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How do I fill in the chart in the link below?

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pohnpei397 eNotes educator | Certified Educator

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To fill in the chart, you need to know what to do.  The actual math is very easy because it requires only addition and subtraction and division.  Here is what you need to do:

  • To find the price, simply divide the total revenue by the number of kilograms produced.
  • To find the marginal revenue, take the total revenue for a given output (say 100 kg) and subtract from that the total revenue from the previous level of output (0 kg).  Then divide that by 100 because this chart asks for price per kg.
  • Do the same for marginal cost per kg, only use total costs rather than total revenues.  You can see that they have done this for the 100 kg level of output.  ($41 in total costs at 100 kg - $18 in total costs at 0 kg = $23 in new costs.  Divide that by 100 and you get $.23/kg as the marginal cost per kg.)
  • Average cost per kg is the total cost divided by the number of kgs of output.
  • The profit or loss is found by subtracting total costs from total revenues.  At the 100 kg level of output, this is $48-$41 = $7.

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