Table 85 Use the Table to Answer the Following Questions

question 9

Essay

Table 8.5 Use the table to answer the following questions.
a.Complete Table 8.5 by filling in the blank cells.
b.Werner is selling in a perfectly competitive market at a price of $40.What is the profit maximising or loss-minimising output?
c.Calculate the firm's profit or loss.
d.Should the firm continue to produce in the short run? Explain.
e.If the firm's fixed costs were $30 higher, what would be the profit-maximising output level in the short run? Indicate whether the output level will increase, decrease or remain unchanged compared to your answer in b.
f.Suppose fixed cost remains at $76.If the price of three-ring binders falls to $20 what is the profit-maximising or loss-minimising output?
g.Calculate the profit or loss.Should the firm continue to produce in the short run? Explain your answer.
h. Suppose the fixed cost remains at $76.What price corresponds to the shut-down point?
i.Suppose the fixed cost remains at $76.What price corresponds to the break-even point?
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-Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry.Table 8.5 shows the firm's cost schedule.

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Definitions:

Unconditioned Response

An automatic, natural response to an unconditioned stimulus that requires no learning.

Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly with the conditioned response of salivation in dogs.

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning.