Consider the following tableOut putTFCTVCTCPriceTR0500....50015....505

1.	Consider the following tableOut putTFCTVCTCPriceTR0500....50015....5050050010001575010050010001500151500200500200025001530001. At which production level there will be no profit or loss to the producer?2. Comment on the profit and loss conditions as TC 1000 and TR750.
Answer» 1. At the production level of 100 units of output, the producer incurs 1500 TC and 1500 TR. So there will be no profit or loss to the producer 2. When TC =1000 TR = 750 Loss = TC-TR = 1000-750 = 250

Consider the following tableOut putTFCTVCTCPriceTR0500....50015....5050050010001575010050010001500151500200500200025001530001. At which production level there will be no profit or loss to the producer?2. Comment on the profit and loss conditions as TC 1000 and TR750.

Answer»

1. At the production level of 100 units of output, the producer incurs 1500 TC and 1500 TR. So there will be no profit or loss to the producer

2. When TC =1000

TR = 750

Loss = TC-TR

= 1000-750 = 250