d Finder File Edit View Go Window Help S Wed Apr 3 2:53PM @ ng.cengage.com Q Search this course 0 X BN e . 2 CENGAGE ' MINDTAP - Module Five Quiz 14. Profit maximization and shutting down in the short run PROFILE The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. ORDERS RENTALS COURSES v Study tools College Success Tips Career Success Tips PRICE (Dollars per tracker) 20 30 40 50 60 70 80 90 QUANTITY (Thousands of trackers) @& Finder File Edit View Go PR @ PROFILE (LIS RENTALS COURSES v Study tools Career Success Tips LN @ College Success Tips [ ] 12 I \\ [> SIGN ouT ] L) Window Help @) & Q & WedApr3 2:53PM @ ng.cengage.com & . 2 CENGAGE ' MINDTAP Q' Search this course o Module Five Quiz @ X Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per tracker) (Trackers) (Dollars) (Dollars) (Dollars) (Dollars) 25.00 v 520,000 40.00 v 520,000 65.00 v 520,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $520,000 per day. In other words, if it shuts down, the firm would suffer losses of $520,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown pricethat is, the price below which it is optimal for the firm to shut downis W per tracker. (el LEN T Save & Continue Continue without saving v JJ '.\\- @@Q E TR