This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Thus , quantity produced will never be less than __________. e) If price is $9, the firm will realize a __________ (profit, loss, break even) of __________ (< $114, $114, >$114). As a result the firm will __________ (continue production, shutdown, break even). If the firm continues production, output will be __________. f) Average total cost is at minimum when price is $__________. Average variable cost is at a minimum when price is __________. The slope of total cost is at its flattest point when price is $__________ g) At the shutdown level of output and price, we know that total variable cost is $__________. At this same position, total fixed cost is __________ (> $180, $180, <$180)....
View Full Document
- Fall '09
- Economics, purely competitive firm