Use the following graphs for questions 22 and 23. At what price would a firm exit the market?(a) Relationship of total cost to totalvariable cost and total fixed cost(b) Relationship of marginal cost toaverage total cost, average variablecost, and average fixed costTotalCosts(dollars) 700Cost 150Per 140TCUnit 130TVC(dollars) 120MC60011010050090804007060ATC300TFC50AVC40AFC2003020TFC10010AFC0 1 2 34 56 7 8 9 10 11 120 1 2 3 4 5 6 7 8 9 10 11 12Quantity of OutputQuantity of Output(units per hour)(units per hour)O$20O$30$45$50

A competitive market, also known as a competitive industry or sector, refers to a market structure…

Use the following graphs for questions 22 and 23. At what price would a firm exit the market? Total Costs (dollars) 700 600 500 (a) Relationship of total cost to total variable cost and total fixed cost 400 300 TFC 200 100 $20 $30 $45 $50 Cost 150 TC TVC TFC Per 140 Unit 130 (dollars) 120 110 100 6 ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៩ ៖ 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Output (units per hour) (b) Relationship of marginal cost to average total cost, average variable cost, and average fixed cost MC ATC AVC AFC 0 1 2 3 4 5 6 7 8 9 10 11 12 AFC Quantity of Output (units per hour)

Use the following graphs for questions 22 and 23. At what price would a firm exit the market? Total Costs (dollars) 700 600 500 (a) Relationship of total cost to total variable cost and total fixed cost 400 300 TFC 200 100 $20 $30 $45 $50 Cost 150 TC TVC TFC Per 140 Unit 130 (dollars) 120 110 100 6 ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៖ ៩ ៖ 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Output (units per hour) (b) Relationship of marginal cost to average total cost, average variable cost, and average fixed cost MC ATC AVC AFC 0 1 2 3 4 5 6 7 8 9 10 11 12 AFC Quantity of Output (units per hour)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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