Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 7DQ
To determine
Shut down point in the short run.
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Students have asked these similar questions
The table below shows cost data for WipeOutSki Company which manufactures skis for beginners. If the
company's fixed costs are $30, what is the marginal cost of five units of output?
Variable
Cost
Fixed
Cost
Total
Cost
Average Variable
Cost
Average Total
Cost
Marginal
Cost
Quantity
$30
1
$10
$30
$25
$30
$45
$30
$70
$30
$100
$30
B.
$135
$30
O $45.00
O S30.00
O S25.00
2)
3.
4)
69
The following graph shows the short-run average total cost curves for different plant sizes and the long-run average total cost curve for a publishing
firm. The five marked quantities indicate points of tangency between each short-run average total cost (ATC) curve and the long-run average total
cost (LRATC) curve; for example, Q1 marks the point of tangency between ATC1 and LRATC.
The orange point on ATC3 indicates the firm's current output level in the short run (Q4).
ATC,
ATC5
LRATC
ATC2
ATC,
ATC.
Q,
Q2
OUTPUT
In the long run, if the firm decides to keep output at its initial level, what will it likely do?
COST PER UNIT
The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities
indicate points of tangency between each short-run average total cost curve (SRATC) and the long-run average cost curve (LRAC); for example,
Q₁ marks the point of tangency between SRATC₁ and LRAC.
The orange point on SRATC3 indicates the firm's current output level in the short run (Q3).
COST PER UNIT
SRATC₁
LRAC
SRATC₂
Q₁ Q₂
SRATC3
24
QUANTITY OF OUTPUT
SRATC5
SRATC4
|
1
Q5
<
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