EQ 9 2010 answer

EQ 9 2010 answer - (d) Suppose that when P=$40/unit the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
EQ #9 – AGEC 105 – March 5, 2010 1. (a) When P = $40/unit, what is the profit maximizing amount of output produced by this firm operating in a perfectly competitive environment? Answer: 30 units (b) What is the shutdown price for the firm? Answer: $17 (c) What is the breakeven quantity for the firm? Answer: 25 units
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (d) Suppose that when P=$40/unit the profitmaximizing amount of output produced by this firm translates into ATC=$22/unit. What is the level of profit achieved by this firm? $540 2. The supply curve for the firm is line segment ABCDE. True or False . 15 20 E $ Q 25 12 17 30 40 A C B D 20 ATC AVC MC...
View Full Document

Ask a homework question - tutors are online