Consider the figure to the right. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E, is exactly 8 units per hour. Calculate total revenues and total variable costs at point E₁ and explain why it is called the short-run shutdown point. Total revenues equal $ ☐ per hour and total variable costs equal $ ☐per hour. (Enter your responses rounded to two decimal places.) Price and Marginal Cost ($ per unit) 4.50 ATC Output (units per hour) MC AVC d₁ Q

Consider the figure to the right. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E, is exactly 8 units per hour. Calculate total revenues and total variable costs at point E₁ and explain why it is called the short-run shutdown point. Total revenues equal $ ☐ per hour and total variable costs equal $ ☐per hour. (Enter your responses rounded to two decimal places.) Price and Marginal Cost ($ per unit) 4.50 ATC Output (units per hour) MC AVC d₁ Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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