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Economics - Solution Computation of the firm output level...

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If you want the formulas and any calculations, select the corresponding cell and press F2( It will show all calculations and formulas Automatically Question: Solution: Computation of the Following Fixed Vairable Total Output Cost AFC Cost AVC Cost ATC 1 $50 $50 $30 $30 $80 $80 2 $50 $25 $50 $25 $100 $50 3 $50 $17 $80 $27 $130 $43 4 $50 $13 $120 $30 $170 $43 5 $50 $10 $170 $34 $220 $44 Question: The firm is selling in a perfectly competitive market. What is the shutdown price? Solution: Computation of the Shutdown Price The Avg Fixed Cost and Variable cost are equal at 25 and the shutdown price is $25 At a price of $40, what output level would the firm produce?
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Unformatted text preview: Solution: Computation of the firm output level Where the marginal cost is 40 on that level out put is 4 Units Hence the output is 4 units What would its profits be? Solution: Computation of the Profit or loss Given information output level 4 Units Price 40 Per unit Variable cost 30 Per unit Fixed cost 50 In total Profit or loss= Total revenue-Variable cost -Fixed cost Where as Total Revenue $160.00 Variable cost $120.00 Fixed cost $50.00 Profit or loss= $(10.00) Hence the Profit or loss is $(10.00) (Function Key on key board), MC $30 $20 $30 $40 $50...
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