Examine how changes in the cost of production affect pricing and production quantity decisions of a firm in a perfectly competitive market.
What is this manufacturer’s fixed cost? Explain how you determined your answer.
Given the information you computed in Table 2, what is the minimum cost output level? Explain why.
What is Brenda’s break-even price for a dozen eggs? Explain how you found that answer.
What is Brenda’s shutdown price for a dozen eggs? Explain how you found that answer.
If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, should Brenda continue producing eggs in the short-run?
Explain how you determined your answer. g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer.