Rate of output (per day) Total cost (per day) $50 0 1 $55 2 $62 3 4 $96 $75 5 $125 6 7 8 $162 $203 $248 Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (- in front of those numbers. a. How much are fixed costs? $ b. What is the profit-maximizing rate of output? units c. Calculate profits or losses at this profit-maximizing rate of output. $ d. How much is lost if the firm shuts down? (Do not include a negative sign with your answer) $ e. Should the firm produce or shut down in the short run? The firm should (Click to select) in the short run.
Rate of output (per day) Total cost (per day) $50 0 1 $55 2 $62 3 4 $96 $75 5 $125 6 7 8 $162 $203 $248 Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (- in front of those numbers. a. How much are fixed costs? $ b. What is the profit-maximizing rate of output? units c. Calculate profits or losses at this profit-maximizing rate of output. $ d. How much is lost if the firm shuts down? (Do not include a negative sign with your answer) $ e. Should the firm produce or shut down in the short run? The firm should (Click to select) in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Rate of output (per day)
Total cost (per day)
$50
0 1
$55
2
$62
3 4
$96
$75
5
$125
6
7
8
$162 $203
$248
Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-
in front of those numbers.
a. How much are fixed costs?
$
b. What is the profit-maximizing rate of output?
units
c. Calculate profits or losses at this profit-maximizing rate of output.
$
d. How much is lost if the firm shuts down? (Do not include a negative sign with your answer)
$
e. Should the firm produce or shut down in the short run?
The firm should (Click to select) in the short run.
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