Problem: Cost figures for a hypothetical firm are given in the attached spreadsheet. Use them for the exercises below. The Firm is selling a perfectly competitive market.
1. Fill in the blank columns
2. What is the minimum price needed by the firm to break even?
3. What is the shutdown price?
4. At a price of $40, what ouput level would the firm produce? What would its profits be?
Output Fixed Costs AFC Variable Cost AVC Total Cost ATC MC
1 $50 $30
2 $50 $50
3 $50 $80
4 $50 $120
5 $50 $170