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Refer to the diagram above, in this instance, at the range of output represented a point c,        the shutdown point has been reached    profits will be maximized    physical imput levels have been reduced    capital imput levels have been reduced

Refer to the diagram above, in this instance, at the range of output represented a point c,        the shutdown point has been reached    profits will be maximized    physical imput levels have been reduced    capital imput levels have been reduced

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Refer to the diagram above, in this instance, at the range of output represented a point c, 

 

 

 

the shutdown point has been reached 
 

profits will be maximized 
 

physical imput levels have been reduced 
 

capital imput levels have been reduced
The image displays a graph illustrating the relationship between costs and the number of web page designs. - The vertical axis represents costs in dollars ($). - The horizontal axis represents the number of web page designs. Key components of the graph: 1. **Curve (TC - Total Costs)**: This is a red, upward-sloping curve that shows how total costs change with the number of web page designs. The curve starts at point "a" and passes through points "b", "c", and "d", indicating different levels of production and corresponding costs. 2. **Line (TR - Total Revenue)**: This is a straight blue line representing total revenue. It starts from the origin and increases linearly. The line intersects the TC curve at a point, suggesting the break-even point where total revenue equals total costs. 3. **Points**: - **a**: Initial point where both total cost and revenue begin. - **b, c, d**: Different production levels with corresponding costs as shown on the TC curve. The intersection of the TR line and TC curve suggests the point where producing web page designs breaks even in terms of cost and revenue. Before this point, the costs exceed revenue, while after this point, revenue surpasses costs.
Transcribed Image Text:The image displays a graph illustrating the relationship between costs and the number of web page designs. - The vertical axis represents costs in dollars ($). - The horizontal axis represents the number of web page designs. Key components of the graph: 1. **Curve (TC - Total Costs)**: This is a red, upward-sloping curve that shows how total costs change with the number of web page designs. The curve starts at point "a" and passes through points "b", "c", and "d", indicating different levels of production and corresponding costs. 2. **Line (TR - Total Revenue)**: This is a straight blue line representing total revenue. It starts from the origin and increases linearly. The line intersects the TC curve at a point, suggesting the break-even point where total revenue equals total costs. 3. **Points**: - **a**: Initial point where both total cost and revenue begin. - **b, c, d**: Different production levels with corresponding costs as shown on the TC curve. The intersection of the TR line and TC curve suggests the point where producing web page designs breaks even in terms of cost and revenue. Before this point, the costs exceed revenue, while after this point, revenue surpasses costs.
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