1. a. Given the following information, state whether the perfectly competitive firm will shut down continue to produce in the short run: Q = 100, P=$12, ATC = $10, AVC = $4. Draw the corresponding diagram as well. b. Calcuate the following: i. Average fixed cost ii. Total Profit

1. a. Given the following information, state whether the perfectly competitive firm will shut down continue to produce in the short run: Q = 100, P=$12, ATC = $10, AVC = $4. Draw the corresponding diagram as well. b. Calcuate the following: i. Average fixed cost ii. Total Profit

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Question

1. a. Given the following information, state whether the perfectly competitive firm will shut down or
continue to produce in the short run:
Q = 100, P=$12, ATC = $10, AVC = $4. Draw the corresponding diagram as wellI.
%3D
b. Calcuate the following:
i. Average fixed cost
ii. Total Profit

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