Assume that the selling price for chicken wings is $2.50. What would be the profit maximizing rate of output? Is the firm making profit above all costs? Why or Why not?

If the price of chicken wings drops to $2.00, how many chicken wings should be produced then? Is the firm making profit above all costs at $2 chicken wings? Why or Why not? At what price would be the short-run breakeven point? At what price would be the firms short-run shut down point?

  

 

Transcribed Image Text:

Chrome File Edit View History Bookmarks People Tab Window Help Get Homework Help With Chex Chrome File Edit View History XG google docs - Google Search docs.google.com/document/d/152 xiyJXVweCZWd2TFShfoy8fpgTRUextpaRNE/edit Unsed document - Google x Input Output (Hours) (Wings) MPP TFC TVC TC AFC AVC ATC MC 25 118 250 212.50 462.50 2.1 1.8 3.9 6.7 1.3 35 185 250 297.50 547.50 1.4 1.6 3.0 5.7 1.5 45 242 250 382.50 632.50 1.0 1.6 2.6 5.1 1.7 55 293 250 467.50 717.50 0.9 1.6 2.4 3.8 2.2 65 331 250 552.50 802.50 0.8 1.7 2.4 2.9 2.9 75 360 250 637.50 887.50 0.7 1.8 2.5 A. 42% Wed Nov 4 10:46:25 PM E 12 Chrome File Edit View History Bookmarks People Tab Window Help Get Homework Help With Chex Chrome File Edit View History XG google docs - Google Search docs.google.com/document/d/152 xiyJXVweCZWd2TFShfoy8fpgTRUextpaRNE/edit Unsed document - Google x Input Output (Hours) (Wings) MPP TFC TVC TC AFC AVC ATC MC 25 118 250 212.50 462.50 2.1 1.8 3.9 6.7 1.3 35 185 250 297.50 547.50 1.4 1.6 3.0 5.7 1.5 45 242 250 382.50 632.50 1.0 1.6 2.6 5.1 1.7 55 293 250 467.50 717.50 0.9 1.6 2.4 3.8 2.2 65 331 250 552.50 802.50 0.8 1.7 2.4 2.9 2.9 75 360 250 637.50 887.50 0.7 1.8 2.5 A. 42% Wed Nov 4 10:46:25 PM E 12