Define and calculate the remaining six major cost elements of a business when given the total costs and the quantity produced. You will then use the computed costs to determine a minimum cost output level for that business. Next, you will compute both the break-even price and the shutdown price for a hypothetical business in a perfectly competitive market. Then you will determine if that business would incur an economic profit at various market prices, and if the business should continue to produce at each of those price levels.

Questions

Table 1 shows an LED light bulb manufacturer's total cost of producing LED light bulbs at various output levels.

Table 1 Cases of LED light Total Costs bulbs produced in an hour 0 3-1500 10 31300 20 31100 30 31300 40 31-400 50 35300 60 36300 }'0 31900 80 39300 90 $11,800 Cases of Total Cost Variable Average Average Average Margin LED light Costs Variable Total Costs Fixed Cost :31 bulbs Costs c. Costs produced in a. b. d. e. an hour 0 $4.500 (Enter your n a n. a n :1 n a response here.) 10 $4.900 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response se here.) here.) here.) here.) here.) 10 $5.100 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response 3e here.) here.) here.) here.) here.) 30 $5.300 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response se here.) here.) here.) here.) here.) 40 $5.400 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response se here.) here.) here.) here.) here.) 50 5.700 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response se here.) here.) here.) here.) here.) 60 $6.700 (Enter your (Enter your (Enter your (Enter your (Enter your respon response response response response se here.) here.) here.) here.) here.) 70 $7.900 Enter Enter your Enter your Enter your Enter your respon response response response response ge here.) here.) here.) here.) here.) 80 $9.700 Enter Enter your Enter your Enter your Enter your respon response response response response se here. ) here.) here. ) here. ) here.) 90 $11,800 Enter your response here.)