(b) Suppose under perfect competition a smartphone producer has total costs of production given by the equationTC = 500 + 100 + 50² (i) Find average total cost and average variable cost and average fixed cost for this producer. Show her MC, ATC and AVC in one graph. (ii) What is the breakeven price and breakeven quantity for this producer in the short run? What is the shutdown price and shutdown quantity for this firm in the short run? (iii)
(b) Suppose under perfect competition a smartphone producer has total costs of production given by the equationTC = 500 + 100 + 50² (i) Find average total cost and average variable cost and average fixed cost for this producer. Show her MC, ATC and AVC in one graph. (ii) What is the breakeven price and breakeven quantity for this producer in the short run? What is the shutdown price and shutdown quantity for this firm in the short run? (iii)
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.7IP
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Question 3
![(b) Suppose under perfect competition a smartphone producer has total costs of production given
by the equationTC = 500 + 100 +5Q²
(i)
Find average total cost and average variable cost and average fixed cost for this
producer. Show her MC, ATC and AVC in one graph.
(ii)
(iii)
What is the breakeven price and breakeven quantity for this producer in the short run?
What is the shutdown price and shutdown quantity for this firm in the short run?
If the market price of the output is $50, how many units will this firm produce?
(iv)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9dbfbce-0da8-4fe2-8d13-ab51ccf8406c%2Fd98ea02e-75d6-45eb-8c42-fb55270acd19%2Ffl4yog8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b) Suppose under perfect competition a smartphone producer has total costs of production given
by the equationTC = 500 + 100 +5Q²
(i)
Find average total cost and average variable cost and average fixed cost for this
producer. Show her MC, ATC and AVC in one graph.
(ii)
(iii)
What is the breakeven price and breakeven quantity for this producer in the short run?
What is the shutdown price and shutdown quantity for this firm in the short run?
If the market price of the output is $50, how many units will this firm produce?
(iv)
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