Answered: The cost data in the following table…

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 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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Question

The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm.

Round your answers to 2 decimal places.

Output	Average Variable Cost	Average Total Cost	Marginal Cost	Total Cost
0	/	/	/	$ 95
1	$	$	$	115
2				125
3				150
4				200
5				270
6				350
7				450

a. Complete above the table.

b. What is the break-even price?

    Break-even price: $

c. What is the shutdown price?

    Shutdown price: $

d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss?

    Quantity: ;       : $

e. If the market price of the product is $100, what quantity will Marshall’s Meats produce? What will be its profit or loss?

    Quantity: ;       : $

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