# of MC workers 0 TVC AVG AFC TC ATC TVCl'Q FCl'Q C-l-VC TCIQ Krill: 11000 24000 31000 46000 54000 63000 59000 "40101th 40 Question 2 [1 mark} What is the lowest price you would be willing to start producing this new product? Be precise. Don't round up to the nearest dollar. Question 3 [1 mark} If you were already committed to the xed costs. how low could the price per chair fall before you would consider shutting down production? Remember, in the SHORT RUN, you have to keep paying your xed costs whether you produce any chairs or not. If you can cover your variable costs, then anything over that will reduce your xed costs. You may be losing money in the short gbut you are losing less money. (1 mark} For Questions 4 to 7, you need to ll in the table for each question. You also need to STATE how many workers, the LEVEL of production and the PROFIT you will make at each level. Your costs, quantities and # of workers will be the same as you calculated in Question 1. Question 4 (1 mark) 1f the price per chair was xed at $85, what would you do? Remember, in the short run you can't alter xed costs, you can just decide where to set the level of production. You need to calculate total revenue and prot or loss for each level as you are given the average revenue. Remember to STATE both what level of production you would choose and what DOLLAR PROFIT you would make. [1 mark] at of PXQ price H: 4- Vi: $ "M\" \"r workers TR AR Q Tc TP HUNU'I-DWNF-'D