CAUTION: MANY PRODUCTS MAY NOT BE EFFECTIVE ON ROADRUNNERS The table below gives data on costs for the Acme Mail-Order Company, a firm in a competitive market. Among their customers is a certain hungry coyote. Q FC VC TC MC AVC ATC 60 60 -- 1 60 16 76 16 16 76 2 60 28 88 12 14 44 3 60 38 98 10 12.7 32.7 4 60 46 106 8 11.5 26.5 60 52 112 10.4 22.4 60 60 120 8 10 20 7 60 70 130 10 10 18.6 8 60 82 142 12 10.25 17.75 60 95 155 13 10.6 17.2 10 60 110 170 15 11 17 11 60 127 187 17 11.5 17 12 60 147 207 20 12.25 17.25 a. Determine the priceand quantity for Acme Company at -the shutdown point -the break-even point b. If the price is $20, what happens in the industry in the long run, assuming all firms have costs identical to the Acme Company's. c. Repeat the analysis from part b, but for a price of $12. LO

CAUTION: MANY PRODUCTS MAY NOT BE EFFECTIVE ON ROADRUNNERS The table below gives data on costs for the Acme Mail-Order Company, a firm in a competitive market. Among their customers is a certain hungry coyote. Q FC VC TC MC AVC ATC 60 60 -- 1 60 16 76 16 16 76 2 60 28 88 12 14 44 3 60 38 98 10 12.7 32.7 4 60 46 106 8 11.5 26.5 60 52 112 10.4 22.4 60 60 120 8 10 20 7 60 70 130 10 10 18.6 8 60 82 142 12 10.25 17.75 60 95 155 13 10.6 17.2 10 60 110 170 15 11 17 11 60 127 187 17 11.5 17 12 60 147 207 20 12.25 17.25 a. Determine the priceand quantity for Acme Company at -the shutdown point -the break-even point b. If the price is $20, what happens in the industry in the long run, assuming all firms have costs identical to the Acme Company's. c. Repeat the analysis from part b, but for a price of $12. LO

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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