Here is the cost information for a typical shoe store in a perfectly competitive industry: a) Complete
Question:
Here is the cost information for a typical shoe store in a perfectly competitive industry:
a) Complete the table for the average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC).
b) At what market price will this firm shut down in the short run? How much are the profits or losses at this point?
c) If the current market price is $75.00, determine what output, Q, this firm should produce in order to maximize profits? Calculate the profits or losses that this firm would earn.
d) If the current market price is $65.00, determine what output, Q, this firm should produce order to maximize profits? And, calculate the profits or losses that this firm would earn.
e) If the current market price is $55.00, determine what output, Q, this firm should produce in order to maximize profits? And, calculate the profits or losses that this firm would earn.
f) If the current market price is $135.00, determine what output, Q, this firm should produce order to maximize profits? And, calculate the profits or losses that this firm would earn.
g) If the current market price is $185.00, determine what output, Q, this firm should produce in order to maximize profits? And, calculate the profits or losses that this firm would earn.
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn