Case
Teaching Notes
Supplementary Resources
Abstract
Leonard Funk has been given full operational control of La Marmotte, a canteen restaurant in the French Alps. Based on the information provided in the case, he needs to decide whether to shut down for the summer and/or increase production during the winter.
Students should complete the cost analysis table below.
Output | Costs | Revenue | Profit | |||||||
Daily | VC | FC | TC | AVC | ATC | MC | MR | AR | TR | π |
86 | 1,244 | |||||||||
87 | 1,326 | |||||||||
88 | 1,411 | |||||||||
89 | 1,499 | |||||||||
90 | 1,589 | |||||||||
91 | 1,682 | |||||||||
92 | 1,777 | |||||||||
93 | 1,876 |
a. The formula for marginal cost is but a valid approximation is .