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4. Brenda Smith operates her own farm raising chickens and producing eggs. She sells her eggs at the local farmers' market where there are several

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4. Brenda Smith operates her own farm raising chickens and producing eggs. She sells her eggs at the local farmers' market where there are several other egg producers also selling eggs by the dozen. (Brenda operates in a perfectly competitive market in which she is a "price taker.") In order to make sure she does not lose money on selling eggs, she does an analysis of her costs for producing eggs as shown on Table 4.a. Table 4.a. Dozens of Fixed Cost Total Cost Variable Costs Average Variable Average Total eggs Costs per dozen Costs per dozen $3.35 $3.35 n/a na na 10 $3.35 $10.50 $7.15 $0.72 $1.05 20 $3.35 $16.40 $13.05 $0.65 $0.82 30 $3.35 $23.10 $19.75 $0.66 $0.77 40 $3.35 $30.00 $26.65 $0.67 $0.75 50 $3.35 $36.50 $33.15 $0.66 $0.73 60 $3.35 $48.00 $44.65 $0.74 $0.80 70 $3.35 $64.40 $61.05 $0.87 $0.92 BO $3.35 $80.00 $76.65 $0.96 $1.00 90 $3.35 $135.00 $131.65 $1.46 $1.50 a. What is Brenda's break-even price for a dozen of eggs? Explain how you found that answer. b. What is Brenda's shut-down price for a dozen of eggs? Explain how you found that

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