1. Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market.
OUTPUT FIXED COST AFC VARIABLE COST AVC TOTAL COST ATC MC
1 $50 $30
2 $50 $50
3 $50 $80
4 $50 $120
5 $50 $170
a. Fill in the blank columns.
b. What is the minimum price needed by the firm to break even?
c. What is the shutdown price?
d. At a price of $40, what output level would the firm produce? What would its profits be?
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