Economics Homework Help

You have been recently hired by one of Ashley Furniture’s suppliers as a manager, and have to process

all available information about revenue and costs to help the company to maximize their profits and, in turn, increase invest in new equipment to increase production and try to improve their market share. Their cash-cow products are old-style rocking chairs, and they are in a perfectly competitive market. The following table contains all available information for your analysis. After reviewing the data, answer the following questions:

a.      Prepare table that shows total variable cost, average total cost, and marginal cost at each level of output.

b.      Plot the average total cost, average variable cost, and marginal cost curves for a single firm (remember that values for marginal cost are plotted at the midpoint of the respective intervals).

c.      Is the company operating in the short run or long run? Justify your answer