MC $30 MR ATC AVC 20 15 75 80 100 Output Based on the above graph: 1. At which point the firm gets abnormal profit? 2. Find the value of Average Fixed cost (AFC) when output (Q) = 100. 3. Determine the shutdown point?

MC $30 MR ATC AVC 20 15 75 80 100 Output Based on the above graph: 1. At which point the firm gets abnormal profit? 2. Find the value of Average Fixed cost (AFC) when output (Q) = 100. 3. Determine the shutdown point?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 23RQ: What two lines on a cost curve diagram intersect at the shutdown point?

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