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Use the following data to analyze the condition when the product proce is set at $32 Assume the following unit cost data are for a purely competitive producer. See table below:  Required:  A. What will be the profit maximizing or loss- minimizing output? B. How much would be the economic profit that the firm will realize per unit of output? C. How much would be the product price for the firm to be at a shutdown position

Use the following data to analyze the condition when the product proce is set at $32 Assume the following unit cost data are for a purely competitive producer. See table below:  Required:  A. What will be the profit maximizing or loss- minimizing output? B. How much would be the economic profit that the firm will realize per unit of output? C. How much would be the product price for the firm to be at a shutdown position

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the following data to analyze the condition when the product proce is set at $32

Assume the following unit cost data are for a purely competitive producer. See table below: 

Required: 

A. What will be the profit maximizing or loss- minimizing output?

B. How much would be the economic profit that the firm will realize per unit of output?

C. How much would be the product price for the firm to be at a shutdown position? 

Assume the following unit-cost data are for a purely competitive producer. Output AFC (S) AVC (S) ATC ($) MC ($) 0 1 2 3 4 5 6 7 8 9 10 - 60 30 20 15 12 10 8.57 7.5 6.67 6 - 45 42.5 40 37.5 37 37.5 38.57 40.63 43.33 46.5 - 105 72.5 60 52.5 49 47.5 47.14 48.13 50 52.5 45 40 35 30 35 40 45 55 65 75
Transcribed Image Text:Assume the following unit-cost data are for a purely competitive producer. Output AFC (S) AVC (S) ATC ($) MC ($) 0 1 2 3 4 5 6 7 8 9 10 - 60 30 20 15 12 10 8.57 7.5 6.67 6 - 45 42.5 40 37.5 37 37.5 38.57 40.63 43.33 46.5 - 105 72.5 60 52.5 49 47.5 47.14 48.13 50 52.5 45 40 35 30 35 40 45 55 65 75
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