Please provide correct information for Table Im not sure if

Please provide correct information for Table, I\'m not sure if I was correct in my answers. Please provide explanation for the bottom half of the question.

Matthew Rafferty produces hiking boots in the perfectly compettive hiking boot market. The table contains information on Rafferty\'s total costs. Fill in the missing values for AFC, AVC, ATC, and MC in the table. (Enter your responses rounded to two decimal places.) Week Total Cost AFC AVC 15.00 190 00115 7575 S 190 355.0020750 75 415.00 560.00 63.58 68.13 780.00 127667 73.09 16.42 920.00 11.50 140 Suppose the equilibrium price in the hilking boot markat is $100.00 In order to maximize profit Rafferty should produceboots, charge a price of Sand earn the optimal roft of sEnter your responses rounded to hwo decimal places) Suppose the equilibrium price in the hiking boot fals to 565.00 In order to maximize profit, Rafferty should now produce boots, charge a price of sand sarn the optimal profit of(Enter your responses rounded to two decimal places) Suppose the equilibrium prica in the hiking boot falls to 550 00 In ordor to maximize profit, Rafferty should now produce boots, charge a price of sand earn the optimal profit ofEnter your rocponses rounded to two decimal placee

Solution

ANSWER:

1) When equilibrium price is $100 , he will make 8 boots per week as mr = mc at 8 boots and charge a price of $100 and earn the optimal profit of $140 as total revenue wiil be ( $100 * 8 = $800) and total cost will be $660, therefore the profit equals = $800 - $660 = $140

2) When equilibrium price is $65 , he will make 6 boots per week as mr = mc at 6 boots and charge a price of $65 and earn the optimal loss of -$90 as total revenue wiil be ( $65 * 6 = $390) and total cost will be $480, therefore the profit equals = $390 - $480 = -$90

3) When equilibrium price is $50 , he will make 3 boots per week as mr = mc at 3 boots and charge a price of $50 and earn the optimal loss of -$150 as total revenue wiil be ( $50 * 3 = $150) and total cost will be $300, therefore the profit equals = $150 - $300 = -$150 but rafferty would minimize his loss by shutting down as price ($50) is less then the avc ($61.67) and he would suffer a loss of $115 , rather then $150 by shutting down in the short run.

OUTPUT PER WEEK	TOTAL COST	AVERAGE FIXED COST	AVERAGE VARIABLE COST	AVERAGE TOTAL COST	MARGINAL COST
0	115	-	-	-	-
1	190	115	75	190	75
2	250	57.5	67.5	125	60
3	300	38.33	61.67	100	50
4	355	28.75	60	88.75	55
5	415	23	60	83	60
6	480	29.17	60.83	90	65
7	560	16.43	63.57	80	80
8	660	14.38	68.13	82.5	100
9	780	12.77	73.88	86.67	120
10	920	11.5	80.5	92	140