Question: Use the variable cost information in the following table to calculate average variable cost and average cost (assume fixed cost is $350), and then use this data to answer the questions that follow. One of them might not have an answer.
a. Give an example of a price at which this firm would want to produce and sell output in both the short run and the long run.
b. Give an example of a price at which this firm would want to produce and sell output in neither the short run nor the long run.
c. Give an example of a price at which this firm would want to produce and sell output in the long run but not in the short run.
d. Give an example of a price at which this firm would want to produce and sell output in the short run but not in the long run.