csB xCity University of New York C xSapling Learning Calcula

cs-B xCity University of New York (C xSapling Learning: Calculator xCosts of g.com/ibiscms/mod/ibis/view.php?id-4666601 Dictionary.com Fin.Transition words > The College Board E TYWLS PhysicsGoogle Docs a Classes o A Th 4Jum of New York (CUNY), Lehman College ECO 167- Microeconomics-Winter18-DELACRUZ Activities and Due Dates Ch.8 Hw 1/19/2018 11:59 PM3/ PrintCalculstor 1/11/2018 10:33 PM Question 11 or 15 Sapling Learning Map The graph below contains the relevant cost curves for a perfectly (or purely) competitive firm. The graph below is not graded. You can move point A to help you answer the The price of the good must be above what point for the firm to eam positive economic profits? uC 900 900 ATC 700 AVC Number 600 What is the shutdown price for this firm? 300 AFC 100 a 100 200 300 400 500 60 700 820 000 1000 Qvantty Previous > G\'ve up & View Sol.ion Check AnswerNext EnR Mero-Lehman-W18(1)docx

Solution

Firm earns no economic profit when Price is equal to Average total cost. Firm earns positive economic profit when price is above the minimum of average total cost. Here firm will earn positive economic profit when price is above $600. So the correct answer is $600

Shut down price is the price below the minimum of AVC. In this case AVC is minimum at $400. Hence shut down price is the price below $400 or simply $400.