2) A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal c

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2 A Computer Company Produces Affordable Easy To Use Home Computer Systems And Has Fixed Costs Of 250 The Marginal C 1 (51.67 KiB) Viewed 56 times

2) A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer. $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth $450 for the sixth, and $500 for the seventh. 1. Create a table that shows the company's output, total cost, marginal cost average cost, variable cost, and average variable cost. 2. At what price is the zero-profit point? At what price is the shutdown point? 3. If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC and AVC curves to illustrate your answer and show the profit or loss. 4. If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.