12) Table 14-4A firm in a competitive market has the following cost structure:OutputTotal Cost$5$10$12$15$24$40134Refer to Table 14-4. When will this firm shut down and exit?Select one:O a. It will shut down if price falls below $3.33 and exit if it falls below $5.cross outO b. It will shut down if price falls below $7 and exit if it falls below $10.cross outO. It will shut down if price falls below $5 and exit if it falls below $3.33.cross outO d. It will shut down and exit if price falls below $5.cross out

Fixed cost is equal to the total cost of zero units of production so the fixed cost is $5. VC=TC-FC…

A firm in a competitive market has the following cost structure: Output Total Cost $5 $10 $12 $15 $24 $40 1 Refer to Table 14-4. When will this firm shut down and exit? Select one: It will shut down if price falls below $3.33 and exit if it falls below $5. O b. It will shut down if price falls below $7 and exit if it falls below $10. O. It will shut down if price falls below $5 and exit if it falls below $3.33. O d. It will shut down and exit if price falls below $5. 2345

A firm in a competitive market has the following cost structure: Output Total Cost $5 $10 $12 $15 $24 $40 1 Refer to Table 14-4. When will this firm shut down and exit? Select one: It will shut down if price falls below $3.33 and exit if it falls below $5. O b. It will shut down if price falls below $7 and exit if it falls below $10. O. It will shut down if price falls below $5 and exit if it falls below $3.33. O d. It will shut down and exit if price falls below $5. 2345

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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