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(Solved): The following graph plots daily cost curves for a firm operating in the competitive market for moto ...




The following graph plots daily cost curves for a firm operating in the competitive market for motor scooter
Using the fallowing table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the d
20,000 level, calculate the op termine the firms total va 30,000 calculate the profit or etween producing and shute it will
tity of units for the firm to produce. Using the data from iated with producing that quantity. Assume that if the firm Select
The following graph plots daily cost curves for a firm operating in the competitive market for motor scooter Using the fallowing table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data fram the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantify. Assume that af the fimm is indiferent between produang and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbots] on the groph to recene exact averege varitble cost information.) If the firm thuts down, it must incur its foxed costs (FC) in the shórt run. In this case, the firm's foxed cost is 5520,000 per day. In other words, if it shuts down, the firm would sudfer losses of \( \$ 520,000 \) per day until its fixed costs end (such as the expuration of a buiding lease). This firm's shutdown price-that is, the price below which it is optimal for the firm to shut dewn-is 20,000 level, calculate the op termine the firm's total va 30,000 calculate the profit or etween producing and shute it will choose to produ ariable cost information.) (Dollars per scooter) \[ \begin{array}{l} 25.00 \\ 40.00 \\ 65.00 \end{array} \] \[ 40,000 \] Total Revenue (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the shuts down, the firm would suffer losses of \( \$ 520,000 \) per day This firm's shutdown price-that is, the price below which it tity of units for the firm to produce. Using the data from iated with producing that quantity. Assume that if the firm Select purple points [diamond symbols] on the graph to re \begin{tabular}{l|l|l|l} Fun. In this case, the firm's fixed & \( \$ 65.00 \) & 20,000 per day. In otl \\ s fixed costs end (such as the ext & \( \$ 80.00 \) & a building lease). \\ imal for the firm to shut down-is & per scooter. \end{tabular}


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See in the graph At price 25 , output = 30000 Total revenue=25×30,000=7
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