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{"ops":[{"insert":"Ball Bearings, Inc., faces costs of production as follows:\nQuantity Total Fixed Cost Total Variable Cost\n0 $100 $0\n1 100 50\n2 100 70\n3 100 90\n4 100 140\n5 100 200\n6 100 360                                                                                                                             Calculate the company\u2019s average fixed cost, average\nvariable cost, average total cost, and marginal\ncost at each level of production.\nb. The price of a case of ball bearings is $50. Seeing\nthat he can\u2019t make a profit, the chief executive\nofficer (CEO) decides to shut down operations.\nWhat is the firm\u2019s profit\/loss? Was this a wise\ndecision? Explain.\nc. Vaguely remembering his introductory economics\ncourse, the chief financial officer tells the CEO\nit is better to produce 1 case of ball bearings,\nbecause marginal revenue equals marginal cost\nat that quantity. What is the firm\u2019s profit\/loss\nat that level of production? Was this the best\ndecision? Explain.\n"}]}

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