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Unformatted text preview: should also include the part where the firm chooses to shut down. 2. A NPT firm has its TR as below and suppose TC=2000+4*X. (Show appropriate graphs!) A. How much profit will the firm make if it shuts down? B. If the firm operates at the output level X=400, how much would you expect the firm to spend on capital (fixed cost), and how much on labor (variable cost)? C. Estimate the range of output where the profit is positive and TR is increasing faster than TC is . D. Estimate the firm’s optimal level of output and its maximum profit. E. Find out the price the firm should charge at its optimal level of output....
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- Spring '08
- Economics, shut down, $10