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The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical
The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive. Output (units of wool) AVC ($) ATC ( $) MC ($) 0 1 20.00 30.00 20.00 17.00 22.00 14.00 3 16.70 20.00 16.00 4 17.00 19.50 18.00 Un 18.00 20.00 22.00 22.33 24.00 44.00 For each market price given below, give the profit-maximizing output quantity and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. Market Price 2max Profit Produce in Short Run a. $22.00 2 Positive Yes b. $18.00 (Click to select) v (Click to select) v c. $16.00 (Click to select) v (Click to select) v
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