Trying to figure out second part ### Cost Curves Diagram for Blackberry ProductionThe graph shown illustrates various cost curves for the production of blackberries, measured in crates per week. The vertical axis represents the price and cost, measured in dollars per crate, while the horizontal axis shows the quantity of blackberries produced, ranging from 0 to 100 crates per week. Three significant curves are plotted on the graph:1. **MC (Marginal Cost) Curve**: - The MC curve displays the additional cost incurred when producing one more unit of output. - It starts at $24 per crate for low levels of production, initially decreases to approximately $20 per crate, and then increases, reflecting the typical U-shaped nature of the MC curve due to economies and diseconomies of scale.2. **ATC (Average Total Cost) Curve**: - The ATC curve shows the average cost per unit of output, incorporating all fixed and variable costs. - This curve also exhibits a U-shape: it starts at $38 per crate for low production levels, decreases to about $28 per crate, and then rises again as production increases, signifying the spreading out of fixed costs over larger numbers of crates before diseconomies of scale set in.3. **AVC (Average Variable Cost) Curve**: - The AVC curve indicates the variable cost per unit of output. - Similar to the other curves, it initially decreases but starts rising after reaching a minimum, underpinning the typical behavior of variable costs in relation to increasing output levels.Understanding these cost curves is fundamental in economics as they assist in identifying the optimal level of production, where costs are minimized and profits are maximized. The intersection of the MC curve and the ATC curve typically highlights the point of productive efficiency, where the cost per unit is at its lowest. ---**Concept: Short-Run Shutdown Decision 1**Farmer Brown grows blackberries. The average total cost, average variable cost, and marginal cost of growing blackberries for an individual farmer are illustrated in the graph to the right.Farmer Brown will incur losses if the market price falls below $24 per crate. *(Enter a numeric response using an integer.)*Furthermore, Farmer Brown should shut down in the short run if the market price falls below $___ per crate.---**Instructions:**Enter your answer in the answer box and then click Check Answer.---**Graph Explanation:**Unfortunately, the graph referred to in the text is not visible as part of this transcription. Generally, such a graph would illustrate the following:1. **Average Total Cost (ATC):** This curve usually shows the total cost per crate divided by the number of crates produced, declining initially before rising.2. **Average Variable Cost (AVC):** This curve typically represents the variable costs per crate, usually positioned below the ATC curve.3. **Marginal Cost (MC):** This line or curve shows the additional cost incurred by producing one more crate, often intersecting both the ATC and AVC at their lowest points.For educational purposes, it's essential to know how these curves interact:- If the market price is above the ATC, the farmer is making a profit.- If the market price is below the ATC but above the AVC, the farmer can cover variable costs but is not making a profit.- If the market price falls below the AVC, the farmer should shut down in the short run as they cannot even cover the variable costs, leading to greater losses by continuing production.---**Completion:**Enter your answers where prompted to check whether you have understood the concept of the Short-Run Shutdown Decision.---

Answered: 24 20 Price and co st (dollars per…

24 20 Price and co st (dollars per arate)

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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