Solved: Karen runs a print shop that makes posters for large, Macroeconomics

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Karen runs a print shop that makes posters for large

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters.What is her AFC per poster (not per thousand!) if she prints 1,000 posters?

Instructions: Round your answer to two decimal places.

$ What is her AFC per poster if she prints 2,000 posters?

Instructions: Round your answer to three decimal places.

$ What is her AFC per poster if she prints 10,000 posters?

Instructions: Round your answer to three decimal places.

$ What is her ATC per poster if she prints 1,000?

Instructions: Round your answer to two decimal places.

$ What is her ATC per poster if she prints 2,000?

Instructions: Round your answer to three decimal places.

$ What is her ATC per poster if she prints 10,000?

Instructions: Round your answer to three decimal places.

$ If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately?

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Macroeconomics: Karen runs a print shop that makes posters for large

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Solution Preview :

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Macroeconomics: Karen runs a print shop that makes posters for large

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Macroeconomics: Karen runs a print shop that makes posters for large

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