Answer to Question #190795 in Microeconomics for mariamgolobiani

Question

Q        TVC

0           0

1           5

2           9

3          14

4          20

5          28

6          38

If the price of output is $7 and fixed costs are $12, how many units of output will this firm produce? What is the total revenue? What is the total cost? Will the firm operate or shut down in the short run? Briefly explain your answers

Answer 1

6 units of products will be produced, while the profit will be 42, but this level will not be profitable, the enterprise will close soon.