Question

Suppose there are 1,000 firms in a perfectly competitive market for paper. Each firm's cost structure is given in the table below. Output (boxes per week) 200 250 300 350 400 Marginal cost (dollars per additional box) 6.40 7.00 7.65 8.40 10.00 12.40 20.70 Average Average variable total cost cost (dollars per box) 7.80 12.80 7.00 11.00 7.10 10.43 7.20 10.06 7.50 10.00 8.00 10.22 9.00 11.00 450 500

can you show me how to draw the break even point, shut down point graph with illustarting the numbers??

Answer 1

We all know shut down point  exists the point where there is minimum average variable cost .there for the output level where the min average variable cost that at 7 break even point exists

And break even point is the point at which business for would be able to cover it's fixed cost part only.

Answer 2

We all know shut down point  exists the point where there is minimum average variable cost .there for the output level where the min average variable cost that at 7 break even point exists

And break even point is the point at which business for would be able to cover it's fixed cost part only.