How do you construct a table showing the marginal cost of

paper cup productions?

Price/Output Determination

Cold Case, Inc., produces beverage containers used by fast

food franchises. This is a perfectly competitive market. The following relation

exists between the firm’s beverage container output per hour and total

production costs:

Total Total

Output Cost

0 $ 35

1,000 85

2,000 145

3,000 215

4,000 295

5,000 385

6,000 485

7,000 610

A. Construct a table showing the marginal cost of paper cup

productions.

B. What is the minimum price necessary for the company to

supply one thousand cups?

C. How many cups would the company supply at industry prices

of $75 and $100 per thousand?

How do you construct a table showing the marginal cost of

paper cup productions?

Price/Output Determination

Cold Case, Inc., produces beverage containers used by fast

food franchises. This is a perfectly competitive market. The following relation

exists between the firm’s beverage container output per hour and total

production costs:

Total Total

Output Cost

0 $ 35

1,000 85

2,000 145

3,000 215

4,000 295

5,000 385

6,000 485

7,000 610

A. Construct a table showing the marginal cost of paper cup

productions.

B. What is the minimum price necessary for the company to

supply one thousand cups?

C. How many cups would the company supply at industry prices

of $75 and $100 per thousand?

How do you construct a table showing the marginal cost of

paper cup productions?

Price/Output Determination

Cold Case, Inc., produces beverage containers used by fast

food franchises. This is a perfectly competitive market. The following relation

exists between the firm’s beverage container output per hour and total

production costs:

Total Total

Output Cost

0 $ 35

1,000 85

2,000 145

3,000 215

4,000 295

5,000 385

6,000 485

7,000 610

A. Construct a table showing the marginal cost of paper cup

productions.

B. What is the minimum price necessary for the company to

supply one thousand cups?

C. How many cups would the company supply at industry prices

of $75 and $100 per thousand?

paper cup productions?

Price/Output Determination

food franchises. This is a perfectly competitive market. The following relation

exists between the firm’s beverage container output per hour and total

production costs:

Total Total

Output Cost

0 $ 35

1,000 85

2,000 145

3,000 215

4,000 295

5,000 385

6,000 485

7,000 610

productions.

B. What is the minimum price necessary for the company to

supply one thousand cups?

C. How many cups would the company supply at industry prices

of $75 and $100 per thousand?