This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 6 . Thus , quantity produced will never be less than 30 . e) If price is $9, the firm will realize a loss (profit, loss, break even) of > $114 (< $114, $114, >$114). As a result the firm will continue production (continue production, shutdown, break even). If the firm continues production, output will be 38 . f) Average total cost is at minimum when price is $ 12 . Average variable cost is at a minimum when price is $ 6 . The slope of total cost is at its flattest point when price is $ 4 . g) At the shutdown level of output and price, we know that total variable cost is $ 180 . At this same position, total fixed cost is > $180 (> $180, $180, <$180)....
View Full Document
This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09