A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed CostVariable CostTotal CostMarginal CostAverage CostAverage Variable Cost1$250$700$950$700 2$250$925$1175$225 3$250 $315 4$250 $360 5$250 $400 6$250 $450 7$250 $550 Complete the table. Round off to the nearest dollar.At what price is the zero-profit point?At what price is the shutdown point?

The following formulas would be helpful to estimate the blanks in the table: Total Cost = Total…

Answered: A computer company produces affordable,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below.

Output	Fixed Cost	Variable Cost	Total Cost	Marginal Cost	Average Cost	Average Variable Cost
1	$250	$700	$950	$700
2	$250	$925	$1175	$225
3	$250			$315
4	$250			$360
5	$250			$400
6	$250			$450
7	$250			$550

Complete the table. Round off to the nearest dollar.
At what price is the zero-profit point?
At what price is the shutdown point?

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