Interpret in below diagram and determine at what point the short run firm will shut down their production and why? $200 MC 150 ATC V$74 Cost and revenue 100 P=$71 50 1 2 4 6 5 Output 7 60 9 AVC 10 MR =P

Interpret in below diagram and determine at what point the short run firm will shut down their production and why? $200 MC 150 ATC V$74 Cost and revenue 100 P=$71 50 1 2 4 6 5 Output 7 60 9 AVC 10 MR =P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Interpret in below diagram and determine at what point the short run firm will shut down their production and why?
$200
MC
150
ATC
V=$74
100
Cost and revenue
P=$71
50
1
2
3
6
5
Output
7
09
9
AVC
10
MR = P

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