Microeconomics 5. Profit maximization and shutting down in the short run.docx

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For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the previous graphto see precise information on average variable cost.)PriceQuantityTotalRevenueFixedCostVariableCostProfit(Dollars permicrowave)(Microwaves)(Dollars)(Dollars)(Dollars)(Dollars)25.0030,000 750,0001,600,000750,000-1,600,00070.0040,000 2,800,0001,600,0001,200,0000100.0045,000 4,500,0001,600,0001,665,0001,235,000Points:1 / 1Close Explanation

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