AutoSave O Off) Exploring Chapter 14 Learning Enhancement Assignment (1) (1) (1) ? No Label v Search Phillips, Tanner J(651) X File Home Insert Draw Design Layout References Mailings Review View Help Comments Editing Share Problem Set C: AVC and ATC 5. AVC and ATC curves are U-shaped. MC intersects ATC and AVC at their lowest point. Therefore, when MC is decreasing or below these curves, it pulls ATC and AVC 6. When MC is rising above these costs' curves, it pulls ATC and AVC 7. ATC is used most frequently. When price is above ATC, the firm is making a (profit or loss) If price is below ATC, the firm is making a (profit or loss) . If the price equals ATC the firm is making an (economic profit, economic loss or zero economic profit) Problem Set D: How does a firm know what is the profit maximizing level of output to produce? 8. Marginal cost = price or when Marginal Cost = . This is called the profit maximization rule. 9. Use Manny's Pizza Product Cost Chart from above to determine how many pizzas. If the market price for pizza is $15, Manny should produce how many pizzas? Page 2 of 3 533 words DX Text Predictions: On Accessibility: Good to go [ Focus + 100% 2:30 AM Type here to search O P W Earnings upcoming AD 4/6/2024L0 : { apter 14 Learning Enhancement Assignment (1) (1) (1) (2 Mo Label Phillips, Tanner J{651) File Horme Insert Draw Design Layout References Mailings Review View Help | = Comments | fEditing x | 13 Share v' - Problem Set E: Shut Down Run In the short run, fixed cost must be paid even if the firm decides to shut down. Therefore, there are some situations, where the firm can minimize its loses if it remains open. 10. If P is below the minimum of AVC, the firm should shut down or remain open) because it is not covering any of its costs. For example, it can't pay its rent and workers. 11. If P is abowve the minimum of AVC. The firm should (shut down or remain open} because it is earning enough money to cover its variable cost and the loss equals its fixed costs. 12. The Shut Down point is where = the minimum of the AVC curve. - | -f+ 100% i :-. : a e @ m Earnings upcoming A 3 Z ii};;:l %1:. Page20of3 533words [} TextPredictions: On T Accessibility: Good to go T Foeus . I8 O Type here to search m )