CostFunanswerstouse[1] - 22.22 171.11 193.33 299.97 1. At...

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Use the information in the following chart to fill in the rest of the chart and answer the questions below. Use the formulas. Work backwards when needed. Weekly Output TFC TVC TC AFC AVC ATC MC 0 10,000 0 10,000 ----- ----- ----- ----- 50 10,000 10,000 20,000 200 200 400 200 100 10,000 18,000 28,000 100 180 280 160 150 10,000 24,999.50 34,999.50 66.67 166.66 233.33 139.99 200 10,000 30,000 40,000 50 150 200 100 250 10,000 35,000 45,000 40 140 180 100 300 10,000 42,000 52,000 33.33 140 173.33 140 350 10,000 50,000 60,000 28.57 142.86 171.43 160 400 10,000 62,000 72,000 25 155 180 240 450 10,000 76998.50 86,998.5
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Unformatted text preview: 22.22 171.11 193.33 299.97 1. At what output is the firm able to break even? Why? When Q is 350 because this is the point where the ATC is at its lowest point 2. At what output should the firm shut down? Why? When Q is between 250 and 300 because this is the point where the AVC is at it lowest point 3. On the graph below, draw the AVC, ATC and MC curves. 50 100 150 200 250 300 350 400 50 100 150 200 250 300 350 400 Output (Q) Costs AVC ATC MC...
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This note was uploaded on 03/26/2012 for the course ECON GM545 taught by Professor Gotches during the Summer '11 term at Keller Graduate School of Management.

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