Cost Schedule Analysis for a Firm
(a) To calculate the Total Variable Cost (TVC) and Total Cost (TC):
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<p>TVC = Output \times Marginal Cost</p>
<p>TC = Total Fixed Cost + TVC</p>
<p>At output 1: TVC = 1 \times 10 = 10, TC = 20 + 10 = 30</p>
<p>At output 2: TVC = 2 \times 20 = 40, TC = 20 + 40 = 60</p>
<p>At output 3: TVC = 3 \times 30 = 90, TC = 20 + 90 = 110</p>
<p>At output 4: TVC = 4 \times 40 = 160, TC = 20 + 160 = 180</p>
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(b) To calculate the Total Revenue (TR) at each level of output if price is $30:
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<p>TR = Price \times Output</p>
<p>At output 1: TR = 30 \times 1 = 30</p>
<p>At output 2: TR = 30 \times 2 = 60</p>
<p>At output 3: TR = 30 \times 3 = 90</p>
<p>At output 4: TR = 30 \times 4 = 120</p>
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(c) To calculate the profit/loss at each level of output:
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<p>Profit/Loss = TR - TC</p>
<p>At output 1: Profit/Loss = 30 - 30 = 0</p>
<p>At output 2: Profit/Loss = 60 - 60 = 0</p>
<p>At output 3: Profit/Loss = 90 - 110 = -20 (loss)</p>
<p>At output 4: Profit/Loss = 120 - 180 = -60 (loss)</p>
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(d) The firm will be in equilibrium at the output level where TR = TC:
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<p>At output 1 and 2 the TR equals TC, so the equilibrium price would be at output levels 1 and 2 if the price should remain at $30.</p>
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(e) With the provided information, it's not possible to determine the time period of the firm's operation, as it requires additional business cycle data or context.
