Question 3 (b) Suppose under perfect competition a smartphone producer has total costs of production givenby the equationTC = 500 + 100 +5Q²(i)Find average total cost and average variable cost and average fixed cost for thisproducer. 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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(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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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