Question

Kenny’s Kebabs is a food stand that sells kebabs. The table below lists Kenny’s production costs per hour.

Number of Kebabs Total Cost Marginal Cost Average Total Cost Average Variable Cost $8 $12 $18 $42 $62

A. Complete the table above.
B. If the price of kebabs is $10, what is the profit-maximising number of kebabs that Kenny’s should produce? (Remember to show your work.)
C. At what price should Kenny’s shut down in the short run (i.e., after fixed costs have been paid)? At what price should Kenny’s exit in the long run? Explain your answers.

Answer 1

plz rate possitively...!

.. Table. No. of T Tokellest ATC ATC Arc F. Kebabs - - 186 $6. $ 8 $12 $ 8 186 $ 6 6 $62 $ 20 $6 $ 6 $ A $ 10 $7 $.5.5 42 $14 $8.4 $7.2 186 $10.33 89.33 Bowhen price of Kebabs =$10 . Profit maximise Condition is MC=MR. Chut Ath= TR- TC = Profit 10x 4 - 28 = $12 bosit. ③ Below price 2 (which is minimum of girm will shut donen in Shortsun. In long run from will shut down it- erce i kaloлo minimum ATC. which is 6. So if bice is below $6 firm will shut in long run. shank you Pla Rate Possitively.