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Micro Unit 3.2_6 CW: Short-Run Shutting Down and Exiting (Numbers and Points)

Last updated 10 months ago

12 Nsɛmmisa

Output	Average Fixed Cost	Average Variable Cost
1	$50.00	$100.00
2	25.00	80.00
3	16.67	66.67
4	12.50	65.00
5	10.00	68.00
6	8.37	73.33
7	7.14	80.00
8	6.25	87.50

No other information is known about this firm other than its name: Under-the-Radar Producers.

1

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1.

Total fixed cost is ________.

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2.

The average total cost of five units of output is ________.

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8.

The lowest price at which the firm will operate, as opposed to shutting down, is and up to, will generate revenue to cover economic profit.

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11.

The firm's short-run supply curve is line segment curve.

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12.

The firm's long-run supply curve is line segment curve.

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3.

The total cost of four units of output is _________.

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4.

If the firm closed down and produced zero units of output, its total cost would be _______.

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5.

The marginal cost of the fifth unit of output ________.

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6.

We would expect the marginal cost curve to intersect that average variable cost at about _______ units of output.

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7.

If the firm decided to increase its output from six to seven units, its total costs would rise by ________.