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K-Electric's costs of production as follows: Quantity Total Variable Costs Rs. 0 Total Fixed Costs Rs.100 Rs.100 Rs. 100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 Rs. 3 Rs. 100 Rs.100 Rs. 100 Rs.100 4 6. a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the fim's profits / losses? Was this a wise decision? Explain.

K-Electric's costs of production as follows: Quantity Total Variable Costs Rs. 0 Total Fixed Costs Rs.100 Rs.100 Rs. 100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 Rs. 3 Rs. 100 Rs.100 Rs. 100 Rs.100 4 6. a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the fim's profits / losses? Was this a wise decision? Explain.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 7PA
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K-Electric's costs of production as follows: Quantity Q3. Total Fixed Costs Total Variable Costs Rs. 0 Rs. Rs.100 Rs.100 Rs. 100 Rs.100 Rs.100 Rs.100 Rs.100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 3 4 a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the firm's profits / losses? Was this a wise decision? Explain.
Transcribed Image Text:K-Electric's costs of production as follows: Quantity Q3. Total Fixed Costs Total Variable Costs Rs. 0 Rs. Rs.100 Rs.100 Rs. 100 Rs.100 Rs.100 Rs.100 Rs.100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 3 4 a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the firm's profits / losses? Was this a wise decision? Explain.
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