What is the lowest price a dozen eggs couldreach before Farmer Johnson would beforced to shut down in the short run? (Pleaseenter your answer without a dollar sign, forvalues less than 1.00, you must put a 0before the decimal) Farmer Johnson producers Eggs in aperfectly competitive egg market. The shortrun cost curves are displayed below.$4.00MC$3.50ATCAVC$3.00$2.50$2.00$1.50$1.00$0.50$020406080100120140160Dozens of EggsPrice of Eggs

Shutting down of firms in the short run is determined by the shutdown rule.

What is the lowest price a dozen eggs could reach before Farmer Johnson would be forced to shut down in the short run? (Please enter your answer without a dollar sign, for values less than 1.00, you must put a 0 before the decimal)

What is the lowest price a dozen eggs could reach before Farmer Johnson would be forced to shut down in the short run? (Please enter your answer without a dollar sign, for values less than 1.00, you must put a 0 before the decimal)

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 2SQP

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Question

What is the lowest price a dozen eggs could
reach before Farmer Johnson would be
forced to shut down in the short run? (Please
enter your answer without a dollar sign, for
values less than 1.00, you must put a 0
before the decimal)

Farmer Johnson producers Eggs in a
perfectly competitive egg market. The short
run cost curves are displayed below.
$4.00
MC
$3.50
ATC
AVC
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0
20
40
60
80
100
120
140
160
Dozens of Eggs
Price of Eggs

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