Break even
Not what you're looking for?
Output Fixed Cost AFC VC AVC TC ATC MC
1 $50 $30
2 $50 $50
3 $50 $80
4 $50 $120
5 $50 $170
Fill in the blanks
What is the minimum price needed by a firm to break even?
What is the shutdown price?
At a price of $40, what output level would the firm produce? What would its profits be?
Purchase this Solution
Solution Summary
The solution goes into a great amount of detail regarding the break even and shutdown price. Step-by-step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.
Solution Preview
Please see the excel file attached.
Output Fixed Cost AFC VC AVC TC ATC MC
1 $50 $50 $30 $30 $80 $80 $30
2 $50 $25 $50 $25 $100 $50 $20
3 $50 $17 $80 $27 $130 ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.