2. Fill in the following cost table. For the first few rows. you can work from left to right. However, as you get to the last two rows, you will need to use the information from the right side of the table to work back to the left side. We do not calculate average costs at a quantity of 0.
Q 0 1 2 3 4 5
TVC 0 3.000 5,000
TC
AFC AVC ATC MC XXXXXX XXXXXX XXXXXX XXXXXX ( K K 3,000 ( ( 11,000 3,250 4.000
5.000
Can you tell if this is the short run or long run? Explain.
b. Can you tell which level of output yields the highest profit? If so. what is the output level? If not.explain. c. Economists define the Break-even Price as the lowest point on the average total cost curve or the lowest average total cost given in a table. What is the break-even price in this problem? d. Economists define the "Shutdown Price" as the lowest point on the average variable cost curve or the lowest average variable cost given in a table. What is the shutdown price in this problem?