depict a ATC curve, one where the firm has negative profits (π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine whether to shutdown or keep producing at Q = 1000.

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

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A: Given,   Output = 50 units per day  Price = $20 per unit  Variable costs (VC) = $24,000 per month

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A: Quantity should be below fixed cost 1000.

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A: Answer is given below

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A:

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Q: PRICE (Dollars per candle) 40 36 32 28 24 20 16 12 8 4 0 0 MC 2 ATC AVC 4 8 10 12 14 16 QUANTITY…

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