5. Brenda Smith operates her own farm raising chickens and producing eggs. She sells her eggs...

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5. Brenda Smith operates her own farm raising chickens and producing eggs. She sells her eggs at the local farmers market, where there are several other egg producers also selling eggs by the dozen. (Brenda operates in a perfectly competitive market in which she is a "price taker.") To make sure she does not lose money on selling eggs, she does an analysis of her costs for producing eggs as shown on Table 3. (Enter your response here.) Table 3 Dozens of eggs 0 10 20 30 40 50 60 70 80 90 Fixed Cost Total Cost Variable Costs $3.35 $3.35 n/a $3.35 $10.50 $7.15 $3.35 $16.40 $13.05 $3.35 $23.10 $19.75 $3.35 $30.00 $26.65 $3.35 $36.50 $33.15 $3.35 $48.00 $44.65 $3.35 $64.40 $61.05 $3.35 $80.00 $76.65 $3.35 $135.00 $131.65 Average Variable Costs per dozen n/a $0.72 $0.65 $0.66 $0.67 $0.66 $0.74 $0.87 $0.96 $1.46 Average Total Costs per dozen n/a $1.05 $0.82 $0.77 $0.75 $0.73 $0.80 $0.92 $1.00 $1.50 a. What is Brenda's break-even price for a dozen eggs? Explain how you found that answer. (Enter your response here.) b. What is Brenda's shutdown price for a dozen eggs? Explain how you found that answer. (Enter your response here.) c. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) d. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. (Enter your response here.) e. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) f. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. (Enter your response here.) 5. Brenda Smith operates her own farm raising chickens and producing eggs. She sells her eggs at the local farmers market, where there are several other egg producers also selling eggs by the dozen. (Brenda operates in a perfectly competitive market in which she is a "price taker.") To make sure she does not lose money on selling eggs, she does an analysis of her costs for producing eggs as shown on Table 3. (Enter your response here.) Table 3 Dozens of eggs 0 10 20 30 40 50 60 70 80 90 Fixed Cost Total Cost Variable Costs $3.35 $3.35 n/a $3.35 $10.50 $7.15 $3.35 $16.40 $13.05 $3.35 $23.10 $19.75 $3.35 $30.00 $26.65 $3.35 $36.50 $33.15 $3.35 $48.00 $44.65 $3.35 $64.40 $61.05 $3.35 $80.00 $76.65 $3.35 $135.00 $131.65 Average Variable Costs per dozen n/a $0.72 $0.65 $0.66 $0.67 $0.66 $0.74 $0.87 $0.96 $1.46 Average Total Costs per dozen n/a $1.05 $0.82 $0.77 $0.75 $0.73 $0.80 $0.92 $1.00 $1.50 a. What is Brenda's break-even price for a dozen eggs? Explain how you found that answer. (Enter your response here.) b. What is Brenda's shutdown price for a dozen eggs? Explain how you found that answer. (Enter your response here.) c. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) d. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. (Enter your response here.) e. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) f. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. (Enter your response here.) g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. (Enter your response here.)

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The detailed answer for the above question is provided below First find the marginal cost schedule w... View the full answer