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# Break even

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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

#### 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.

\$2.49