Break even
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?
https://brainmass.com/economics/pricing-output-decisions/break-shutdown-price-308898
Attachments
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 ...
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.