a firms average total cost is 60 its average variable cost is 30 and its total fixed cost is 600. its output
Homework Answers
Option a
ATC=AFC+AVC
AFC= ATC - AVC = 60-30=30
AFC=TFC/Output
30=600/Output
Output =600/30=20 units
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a firms average total cost is 60 its average variable
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Exhibit 89 Marginal cost Average total cost Dollars per unit Average variable cost 92999 Quantity per period 56. Refer to Exhibit 8.9, which shows a perfectly competitive firm's short-run output decisions. At price Pa, the form a. produces nothing. b. produces at a specific output to minimize its short-run loss. c. earns short-run economic profit by producing at a specific output. d. is indifferent between producing and shutting down. e, produces at a specific output to earn a normal...
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