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Please refer to the background information below to answer the following two questions. Below show the production cost curves (in $) of a typical firm
Please refer to the background information below to answer the following two questions. Below show the production cost curves (in $) of a typical firm in a perfectly competitive industry (not drawn to scale), where a=93, =58, d=17, e=13, f=10, m=12, n=20, x=36, y=40, 2=68. Marginal Cost Average Cost Average Variable Cost Price=$ al. N b c d e [ m n Xy z Quantity / units 42. The fixed cost of a typical firm is $[ Answer42 |. 43. If the current market price is $58 per unit, in the short run, the firm should [ Answer43A | (A. produce 12 units; B. produce 20 units; C. produce 36 units; D. produce 40 units; E. produce 68 units; F. shut down and produce 0 unit). Correspondingly, in the short run, the firm's economic profit is $[ Answer43B |
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