Answer Happy

Output 1 2 3 4 11. 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. 5 6 7 Fixed Cost $250 $250 $250 $250 $250 $250 $250 Variable Cost $700 $925 Total Cost $950 $1175 Marginal Cost $700 $225 $315 $360 $400 $450 $550 Average Cost Average Variable Cost a. Complete the table. Round off to the nearest dollar. b. At what price is the zero-profit point? c. At what price is the shutdown point? d. If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? e. If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? f. We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?