Which firm is/are able to break even? Which firm(s) is/are able to break-even?Output P123451515151515Price and costs are in thousand pesosOutput P1152345FIRM IIAC AFC AVC11 561511 2.57.51511.67 1.671015131.25 11.751514113Price and costs are in thousand pesosFIRM IVOutput1234AC AFC AVC26 111523.5 5.51821.67 3.671822.75 2.752023 2.2 20.8FIRM IAC AFCAVCP1523 10 1315155101515 3.33 11.671517.52.5 151521219Price and costs are in thousand pesos5Output1234FIRM IIIP15151515515Price and costs are in thousand pesosAC2821192021AFC AVC2612 16432.46557815151718.6MC1521182624MC611151718MC137152535MC1614152325

In perfectly competitive market, there are many firms selling identical goods. Consumers can not…

15 22.75 2.75 15 23 2.2 Price and costs are in thousand pesos M 4 5 FIRM II AC AFC 11 5 15 11 2.5 15 11.67 1.67 15 13 1.25 1 15 14 Price and costs are in thousand pesos Output 1 2 3 4 5 Output 1 2 3 4 5 Output 1 2 P 15 FIRM I AC AFC AVC 23 10 13 15 5 10 15 3.33 11.67 15 17.5 2.5 15 15 21 2 19 Price and costs are in thousand pesos 3 4 P 15 15 15 P FIRM III AC 28 21 19 20 21 15 15 15 15 5 15 Price and costs are in thousand pesos 20 20.8 AVC 6 7.5 10 6 4 3 2.4 . 11.75 13 AFC AVC 12 16 15 15 17 18.6 26 24 MC 6 11 15 17 18 MC 13 7 15 25 35 MC 16 14 15 23 25

15 22.75 2.75 15 23 2.2 Price and costs are in thousand pesos M 4 5 FIRM II AC AFC 11 5 15 11 2.5 15 11.67 1.67 15 13 1.25 1 15 14 Price and costs are in thousand pesos Output 1 2 3 4 5 Output 1 2 3 4 5 Output 1 2 P 15 FIRM I AC AFC AVC 23 10 13 15 5 10 15 3.33 11.67 15 17.5 2.5 15 15 21 2 19 Price and costs are in thousand pesos 3 4 P 15 15 15 P FIRM III AC 28 21 19 20 21 15 15 15 15 5 15 Price and costs are in thousand pesos 20 20.8 AVC 6 7.5 10 6 4 3 2.4 . 11.75 13 AFC AVC 12 16 15 15 17 18.6 26 24 MC 6 11 15 17 18 MC 13 7 15 25 35 MC 16 14 15 23 25

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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