The price of jeans in a perfectly competitive market is $17. Costs are as follows:
Quantity 0 1 2 3 4 5 6 7 8 9 10
Total Cost 10 17 26 37 50 65 82 101 122 145 170
MC 7 9 11 13 15 17 19 21 23 25
ATC 17 13 12.3 12.5 13 13.7 14.4 15.2 16.11 17.0
AVC 7 8 9 10 11 12 13 14 15 16
- What is the profit maximizing rate of output for the firm?
- What is the profit maximization rule?
- At what price should the firm shut down?
- What is the shutdown rule?