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Can someone help me please?
5. Profit maximization and shutting down in the short run The following graph plots daily cost
curves for a firm operating in the competitive market for rompers.
Using the following tabie, for each price level, calculate the optimal quantity of units for the firm
to produce. Using the data from the graph to determine the firm's total variabie cost, calculate the
profit or loss associated with producing that quantity. Assume that if the firm is indifferent
between producing and shutting down, it wilf choose to produce. (Hint: Select purple points
[diamond symbois] on the graph to receive exact average variable cost information. If the firm
shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is
$135,000 per day. In other words, if it shuts down, the firm would sutfer losses of $135,000 per
day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown
price-that is, the price below which ie is optimal for the firm to shut down-is per romper.

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Can someone help me please 5. Profit maximization and shutting .pdf

  • 1. Can someone help me please? 5. Profit maximization and shutting down in the short run The following graph plots daily cost curves for a firm operating in the competitive market for rompers. Using the following tabie, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variabie cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it wilf choose to produce. (Hint: Select purple points [diamond symbois] on the graph to receive exact average variable cost information. If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $135,000 per day. In other words, if it shuts down, the firm would sutfer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which ie is optimal for the firm to shut down-is per romper.