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A firm has leased plant and equipment to produce video games, which can be sold in unlimited quantities at $13 each. The following figure describes
A firm has leased plant and equipment to produce video games, which can be sold in unlimited quantities at $13 each. The following figure describes the associated costs of production: Rate of output (per day) 0 2 3 5 6 7 8 Total cost (per day) $50 $55 $62 $75 $96 $125 $162 $203 $248 Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. How much are fixed costs? S b. What is the profit-maximizing rate of output? units c. Calculate profits or losses at this profit-maximizing rate of output. d. How much is lost if the firm shuts down? (Do not include a negative sign with your answer.) S e. Should the firm produce or shut down in the short run? The firm should [(Click to select) | in the short run
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