Microeconomics 9th Edition by Stephen Slavin

Exercise 75

You should do this problem in four steps. First: Fill in Table 1. Assume fixed cost is $100 and price is $64.
Second: Fill in Table 2.
Third: Draw a graph of the firm's demand, marginal revenue, average variable cost, average total cost, and marginal cost curves on a piece of graph paper. Be sure to label the graph correctly. On the graph, indicate the break-even and shut-down points and the firm's short-run and long-run supply curves.
Fourth: Calculate total profit in the space below, then answer questions (a) through (d).
(a) The minimum price the firm will accept in the short run is $ ________.
(b) The minimum price the firm will accept in the long run is $ ________.
(c) The output at which the firm will maximize profits is ________.
(d) The output at which the firm will operate most efficiently is ________.