What is the total cost of production 800 units of output?

ii. From the graph identify the shut down point of the firm.

iii. What is the efficient scale of production on the graph and explain why it is the efficient scale of production?

iv. If price in the economy is $60, is the firm earning profit or loss? Explain your answer.

Marginal Cost E $60 - - Average D Total $45 - - Cost $40- Average C $30-- Variable Cost A $10 200 450 | 800 650