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e... Dictionary.com | Fi... Transition Words The College Board TYWLS Physics Google Docs Ca ing niversity of New York (CUNY), Lehman College-ECO 167-Microeconomics-Winter18-DELACRUZ Activities and Due Dates core 1/19/2018 1159 PM 33/7 1/11/2018 10:33 PM Gradeb PrintCalculator Question 11 of 15 Mapdod Sapling Learning The graph below contains the relevant cost curves for a perfectly (or purely) compecitive firm. The graph below is nol graded. You can move point A to help you answer the questions what point for the firm to earn positive economic profits? 7 P00 AVC Number 600 What is the shutdown price for this frm? 300 900 1000

Solution

Question 1). Answer :- Price of the good must be above $ 600.

Explanation :- For earning positive economic profit, Price of the good must be above the price where average total cost (ATC) curve meet marginal cost (MC) curve on the graph. In the graph given in question, Average total cost (ATC) curve meet marginal cost (MC) at the price of $ 600. Accordingly, Price of the good must be above $ 600 in the given question so that firm earn positive economic profits.

Question 2). Answer :- Shutdown price = $ 400.

Explanation :- Shutdown price is where the average variable cost (AVC) meets marginal cost (MC) curve on the graph. In the graph given in question, Average variable cost (AVC) curve meet marginal cost (MC) at the price of $ 400. Accordingly, Shutdown price is $ 400.