The firm utilizes resources so that the marginal product per dollar spent is equal for all resources.

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Use this table to answer the following question. Output Total Variable Cost $1 $20 $2 $24 $3 $33 $4 $40 $5 $45 $6 $60 $7 $77 $8 $96 $9 $180 $10 $200 The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?

Evaluate the factors affecting firm behavior, such as production and costs

Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. (Hint: Determine the total fixed cost first.) Instructions: Enter your answers rounded to two decimal places. Total Average Fixed Cost Average Total Cost Marginal Cost Output Variable Total Cost Cost 1 $10.00 $9.76 $9.76 $19.76 2 $19.06 $14.53 $9.30 $29.06 3 $3.33 $12.63 $37.90 4 $2.50 $36.31 $11.58 $8.41 $46.31 $2.00 $44.30 $10.86 LO

Lesson 8 - Costs Question 2

I was wondering I could get help with the question below? Thanks in advance!   A firm has three different production facilities, all of which produce the same product. While reviewing the firm’s cost data, Jasmin, a manager, discovers that one of plants has a higher average cost than the other plants and suggests closing this plant. Another manager, Joshua, notes that the high-cost plant has high fixed costs but the that the marginal cost in this plant is lower than in the other plants. He says that the high-cost plant should not be shut down but should expand its operations. Who is right?