a) What is the averge total cost at which this firm reaches its break even pointb) what is the average variable cost at which this firm reaches it shut down point? A perfectly competitive firm has the following short-run total cost.Total cost (in Taka)Average total costVariable costAverage variable costMarginal costQuantity3.08.011.016.023.05.32.043.0(a) Calculate this firm's marginal cost for output level 5.

In the short run, the firm has to incur fixed cost even if it produces zero units. The shut down…

Answered: What is the averge total cost at which…

What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?

A perfectly competitive firm has the following short-run total cost.
Total cost (in Taka)
Average total cost
Variable cost
Average variable cost
Marginal cost
Quantity
3.0
8.0
11.0
16.0
23.0
5.
32.0
43.0
(a) Calculate this firm's marginal cost for output level 5.

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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