(3 marks) Total Costs = 150,000 + 50,000 + 10,000 Q + 500 Q2 (sunk) (avoidable) The rm operates in a perfectly competitive market. (MC
(3 marks) Total Costs = 150,000 + 50,000 + 10,000 Q + 500 Q2 (sunk) (avoidable) The rm operates in a perfectly competitive market. (MC = 10,000 + 1,000 Q) a) (1) Find the nn's short-run shutdown price. b) (1) Find the rm's long-run shutdown price. c) (l) The firm is now deciding whether or not to produce this period. The price of output is $25,000. How much will it gain by choosing to operate
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