ECO/365 -- WEEK 3 QUIZ...

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Question
ECO/365 -- WEEK 3 QUIZ
(Please use some other color than black for your font.)
#1 Short Run Cost Structure of Joe’s
Barbe$hop
Complete the
cost structure on this page, then explain when a firm would produce (and at
what level, with what consequence) and when it would shut down. Assume a perfectly competitive market, the
point of this exercise is to decide how much should Joe produce of barbering
services when the market price is as the following questions propose. (Use textbook jargon and explain the typical
actions of the firm.)
Quantity
FC
VC
TC
AFC
AVC
ATC
MC
0
$
50.00
10
$
50.00
20
$
50.00
30
$
50.00
40
$
50.00
50
$
50.00
60
$
50.00
70
$
50.00
80
$
50.00
90
$
50.00
100
$
50.00
Continued on next page…
What quantity would
be produced? When would Joe shut down
his barbe$hop?
A) $1?
Why?
B) $2? Why?
C) $3? Why?
D) $4? Why?

 

Solution ID:393741 | This paper was updated on 26-Nov-2015

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