Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $500. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters.

Instructions: Round your answers to 3 decimal places.

a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? $ .

What if she prints 2,000 posters? $ .

What if she prints 10,000 posters? $ .

b. What is her ATC per poster if she prints 1,000? $ .

What if she prints 2,000? $ .

What if she prints 10,000? $ .

c. If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately? (Click to select)