The total cost of producing 6 units of output is __________________ If the firm is producing at an output level of 2 units, the ATC is _____________ and the AVC is ______________ The profit-maximizing firm would shut down in the short run if the market price of its output dropped below ___________________ At what price would a profit-maximizing firm earn zero economic profits? _______________

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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  1. Assume the following total cost schedule for a perfectly competitive firm.

 

Output

TVC

TFC

0

0

100

1

40

100

2

70

100

3

120

100

4

180

100

5

250

100

6

330

100

     

 

The total cost of producing 6 units of output is __________________

If the firm is producing at an output level of 2 units, the ATC is _____________ and the AVC is ______________

The profit-maximizing firm would shut down in the short run if the market price of its output dropped below ___________________

At what price would a profit-maximizing firm earn zero economic profits? _______________

 

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