Question 2 Assume that a firm involves on a competitive market. There are 50 firms. Total...

 

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Question 2 Assume that a firm involves on a competitive market. There are 50 firms. Total Cost 130 175 Quantity 01234567 7 8 9 205 235 255 280 310 350 410 490 Variable Cost 130 Marginal Cost 15000LC FRESH 45 30 20 25 90 40 60 GO Price 90 80 70 60 50 40 AVC 30 20 10 0 ATC 175 102.5 78.3 CP.75 a) Fill this table. b) Find the shutdown point. c) Find the break-even point. d) Now, suppose that the demand is given by $$1.5 50 54.4 Quantity demanded 200 300 400 500 600 700 800 900 1000 1100 Find the optimal quantity to produce. Question 2 Assume that a firm involves on a competitive market. There are 50 firms. Total Cost 130 175 Quantity 01234567 7 8 9 205 235 255 280 310 350 410 490 Variable Cost 130 Marginal Cost 15000LC FRESH 45 30 20 25 90 40 60 GO Price 90 80 70 60 50 40 AVC 30 20 10 0 ATC 175 102.5 78.3 CP.75 a) Fill this table. b) Find the shutdown point. c) Find the break-even point. d) Now, suppose that the demand is given by $$1.5 50 54.4 Quantity demanded 200 300 400 500 600 700 800 900 1000 1100 Find the optimal quantity to produce.

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a Filling the table Quantity starts from 0 Total Cost at Q0 is given as Rs 130 Variable Cost at Q0 i... View the full answer