Question

Help Search 1 3 4 5 20.0 6 The table below shows the cost information for a firm in a perfectly competitive industry. What would be the shut down price for this firm? Q FC VC TC MC AFC AVC ATC 0 100 100 100 16 116 16 100.0 16.0 116.0 2 100 30 130 14 50.0 15.0 65.0 100 42 142 12 33.3 14.0 47.3 100 56 156 14 25.0 14.0 39.0 100 72 172 16 14.4 34.4 100 90 190 18 16.7 15.0 31.7 7 100 110 210 20 14.3 15.7 30.0 8 100 132 232 22 12.5 16.5 29.0 100 156 256 24 11.1 17.3 28.4 10 100 182 282 26 10.0 18.2 28.2 11 100 210 310 28 9.1 19.1 28.2 12 100 240 340 30 8.3 20.0 28.3 13 100 272 372 32 7.7 20.9 28.6 14 100 306 406 34 71 21.9 29.0 15 100 342 442 36 6.7 22.8 16 100 380 480 38 6.3 23.8 30.0 17 100 420 520 40 5.9 24.7 30.6 18 100 462 562 42 5.6 25.7 31.2 19 100 506 606 44 5.3 31.9 20 100 552 652 46 5.0 27.6 32.6 9 29.5 26.6 Answer:

Answer 1

$14.0, is the minimum AVC which is the shut down price. That part of MC above the shut down price is the supply curve of the perfectly competitive firm