s Charts SmartArt Review Paragraph Emphasis Heading 1 Normal Graph on the bottom
ID: 1154476 • Letter: S
Question
s Charts SmartArt Review Paragraph Emphasis Heading 1 Normal Graph on the bottom of the page give you information on Short-Run Cost for a firm in a competitive environment: Use this information to answer the following questions. For a purely competitive, price-taking firm, the beak eren price is? For a purely compeive, price-taking fitshetprce is? For a purely competitive, price-taking firm, a market price of $15 will cause this fim to produce? COSTS (S) MC AC 60 D' 50 40 30 D' AVC 10 2 25 3 5ss 6 Q(000) 0Explanation / Answer
Break-even point is a point at which Marginal cost is equal to average total cost that is point F. At this point, marginal revenue exactly offsets the marginal cost of production and total revenue will exactly offset the total cost.
Shut down rule if the price of the product is less than the average variable cost of production at the profit-maximizing output. Point E.
At price 15 it will produce the quantity that is lies between 1000 and 2000 see the corresponding quantity on Marginal cost graph.
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