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

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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
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Unformatted text preview: (d) Suppose that when P=$40/unit the profit–maximizing 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...
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