Homework Help is Here – Start Your Trial Now!
Business
Economics
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? $ .25 What if she prints 2,000 posters? 2$ .125 What if she prints 10,000 posters? 2$ .025 b. What is her ATC per poster if she prints 1,000? 2$ 1.25 What if she prints 2,000? $ 1.025 What if she prints 10,000? $ .805 c. If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately? No

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? $ .25 What if she prints 2,000 posters? 2$ .125 What if she prints 10,000 posters? 2$ .025 b. What is her ATC per poster if she prints 1,000? 2$ 1.25 What if she prints 2,000? $ 1.025 What if she prints 10,000? $ .805 c. If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately? No

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
See similar textbooks
icon
Related questions
Question
100%

Does it look like I got the right answers for this question?

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? .25 What if she prints 2,000 posters? .125 What if she prints 10,000 posters? $ .025 b. What is her ATC per poster if she prints 1,000? 1.25 What if she prints 2,000? 1.025 What if she prints 10,000? $ .805 c. If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately? No %24 %24
Transcribed Image Text:Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? .25 What if she prints 2,000 posters? .125 What if she prints 10,000 posters? $ .025 b. What is her ATC per poster if she prints 1,000? 1.25 What if she prints 2,000? 1.025 What if she prints 10,000? $ .805 c. If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately? No %24 %24
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Arrow's Impossibility Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS