Question

Refer to the table below to answer the questions.

 

q	TFC	TVC	TC	MC	AVC	ATC
0	$100	$0	$100	--	--	--
1	100	40	140	40	40	140
2	100	60	160	20	30	80
3	100	90	190	30	30	63.33
4	100	124	224	34	31	56
5	100	180	280	56	36	56
6	100	264	364	84	44	60.67
7	100	372	472	108	53.14	67.43

 

2.1) If the market price is $20, then this firm will maximize profits by producing ________ units of output. (1M)

2.2) If the market price is $84, then this firm will maximize profits by producing ________ unit(s) of output and its profits will be ________. (1M)

2.3) If the market price is $84, then in the long run the firm will _________. (1M)

2.4) If the market price is $34, then in the long run the firm will _________. (1M)

2.5) If the market price is $34, then in the short run the firm will remain continue producing output__________. (1M)

2.6) If the market price is $30, then this firm will maximize profits by producing _________ units of output. (1M)

2.7) The shutdown point price for this firm is _______. (1M)

2.8) The lowest output this firm would produce before shutting down is ________ units. (1M)