$ MOT ATC PEAR MR 10 9 8 7 6 5 4 3 2 I AVC 0 lo 20 30 40 50 670 80 90 100 110 120
Posted: Thu Apr 28, 2022 11:31 am
1. After what level of output does the law of increasing cost
set in?
2 After what level of output does the law of diminishing return
set in?
3. What is the fixed cost of this firm? (use the 120 level of
output to determine fixed costs)
4. What is the firm’s profit at the profit maximizing level of
output
5. If there are 2000 firms in the industry, what would be
the total production level of the industry at the $7 price
level.
6. What is the shut down point for this firm (below what price
level would the firm be inclined to shut down in the short
run)?
$ MOT ATC PEAR MR 10 9 8 7 6 5 4 3 2 I AVC 0 lo 20 30 40 50 670 80 90 100 110 120
set in?
2 After what level of output does the law of diminishing return
set in?
3. What is the fixed cost of this firm? (use the 120 level of
output to determine fixed costs)
4. What is the firm’s profit at the profit maximizing level of
output
5. If there are 2000 firms in the industry, what would be
the total production level of the industry at the $7 price
level.
6. What is the shut down point for this firm (below what price
level would the firm be inclined to shut down in the short
run)?
$ MOT ATC PEAR MR 10 9 8 7 6 5 4 3 2 I AVC 0 lo 20 30 40 50 670 80 90 100 110 120