Use the following to answer question:
-(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.What is the minimum price that Sergei needs to receive for a tub of ice cream to stay in business in the long run?

Question

Use the following to answer question: 
-(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.What is the minimum price that Sergei needs to receive for a tub of ice cream to stay in business in the long run?

Quizplus · Accepted Answer

The minimum price that Sergei needs to receive for a tub of ice cream to stay in business in the long run is $36.67. This is because in the long run, a firm must receive a price that is at least equal to its average total cost in order to stay in business. In this case, Sergei's average total cost is $36.67, so he must receive a price of at least $36.67 per tub of ice cream to stay in business.

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