PriceQuantityTotal RevenueFixed CostVariable CostProfit(Dollars per tote)(Totes)(Dollars)(Dollars)(Dollars)(Dollars)10.00 44,000 16.00 44,000 40.00 44,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease).This firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per tote. ### Graph ExplanationThis graph illustrates the relationship between the quantity of production (in thousands of totes) and the cost per tote in a hypothetical market scenario. Three cost curves are depicted: Marginal Cost (MC), Average Variable Cost (AVC), and Average Total Cost (ATC).1. **Axes:** - The horizontal axis represents the **quantity** of totes produced, measured in thousands. - The vertical axis indicates the **price** in dollars per tote.2. **Curves:** - **Marginal Cost (MC) Curve:** Denoted in orange, this curve shows the cost of producing one additional unit. It typically initially decreases, reaches a minimum, and then increases due to diminishing returns. - **Average Variable Cost (AVC) Curve:** Shown in purple, this curve represents the average cost per unit related to variable inputs (e.g., labor, materials). It follows a U-shape. - **Average Total Cost (ATC) Curve:** Illustrated in green, this curve shows the average cost per unit, combining both fixed and variable costs. It also follows a U-shape and is typically above the AVC curve as it includes fixed costs.3. **Intersection Points:** - The intersection between the MC and AVC curves indicates the output level where the cost of producing one more unit equals the average variable cost. - The intersection between the MC and ATC curves indicates the output level where the cost of producing one more unit equals the average total cost, often corresponding to the efficient scale of production.This graph is crucial in understanding production and cost efficiency in microeconomics, particularly in competitive market settings.

Total revenue is money a company makes from selling its products or services. It's found by multiplying the number of things sold by their cost. This means the total sales income a business gets.Price PQuantity QTotal Revenue TR = P*QFixed CostVariable Cost = AVC*QProfit = TR - FC - VC10.00600010*6000 = 60,00044,0006000 * 10 = 6000060,000 - 44,000 - 6000 = -44,00016.00800016 * 8000 = 128,00044,0008000 * 10.5 = 84000128,000 - 44,000 - 84,000 = 040.001200040*12000 = 480,00044,00012000 * 16 = 192,000480,000 - 44,000 - 192,000 = 244,000This firm's shutdown price is the price below which it is optimal for the firm to shut down 10 per tote.Final Answer:Price PQuantity QTotal Revenue TR = P*QFixed CostVariable Cost = AVC*QProfit = TR - FC - VC10.00600010*6000 = 60,00044,0006000 * 10 = 6000060,000 - 44,000 - 6000 = -44,00016.00800016 * 8000 = 128,00044,0008000 * 10.5 = 84000128,000 - 44,000 - 84,000 = 040.001200040*12000 = 480,00044,00012000 * 16 = 192,000480,000 - 44,000 - 192,000 = 244,000This firm's shutdown price is the price below which it is optimal for the firm to shut down 10 per air tote.