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Ball bearing inc faces costs Q2. Ball Bearing Inc faces costs of production as follows Total Fixed Costs Total Variable costs Quantity $100 10 100

Ball bearing inc faces costs
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Q2. Ball Bearing Inc faces costs of production as follows Total Fixed Costs Total Variable costs Quantity $100 10 100 100 100 100 100 50 70 +90 140 200 360 a) Calculate the company's average fixed costs, average variable costs, average total costs and marginal costs at each level of production. The price of a case of ball bearing is $50. Seeing that she cannot make a profit. The General Manager decided to shut down operations. What are the firm's profit/losses? Was this wise decision? Why? At I level of production marginal revenue equals marginal cost. What are the firm's profits/losses at that level of production? Was this the best decision? Explain b) c)

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