Use this table to answer the following question. Output Total Variable Cost $1 $20 $2 $24 $3 $33 $4 $40 $5 $45 $6 $60 $7 $77 $8 $96 $9 $180 $10 $200 The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?
Use this table to answer the following question. Output Total Variable Cost $1 $20 $2 $24 $3 $33 $4 $40 $5 $45 $6 $60 $7 $77 $8 $96 $9 $180 $10 $200 The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Use this table to answer the following question.
Output |
Total Variable Cost |
$1 |
$20 |
$2 |
$24 |
$3 |
$33 |
$4 |
$40 |
$5 |
$45 |
$6 |
$60 |
$7 |
$77 |
$8 |
$96 |
$9 |
$180 |
$10 |
$200 |
The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?
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