Question: 4) Use the table below to answer the following questions: Input Output AFC AVC AC MC 10 15 20 25 050505 0 XXX XXXX

4) Use the table below to answer the following questions: Input Output

4) Use the table below to answer the following questions: Input Output AFC AVC AC MC 10 15 20 25 050505 0 XXX XXXX XXX XXX 60 3.50 1.00 4.50 1 140 1.50 0.86 2.36 0.75 180 1.17 1.00 2.17 1.5 200 1.05 1.20 2.25 3 210 1.00 1.43 2.43 6 The price of the output is $3. a) What is the profit-maximizing level of input? b) What is the profit at this point? c) What would the output price have to be to make 15 the profit-maximizing level of input? d) What is the zero-profit price? e) What is the shut-down price? +

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